LOCAL lettings and property sales franchise, Belvoir is predicting a brighter future of renewed property investment because of Britain’s vote to leave the European Union.
The company – the largest of its kind in the UK – believes the promise of a more stable government is giving new hope for both private sector tenants and landlords as well as the wider property market.
Michael McGrath, who owns the Belvoir office in Bow Street, Lisburn says: “We are already seeing renewed interest in property investment and equally high demand from tenants.
“The indications are that money invested in property will continue to work harder than in many other investment vehicles where returns can be poor.”
Trevor Burns, who owns Belvoir offices on Abbey Street in Bangor and on Frances Street in Newtownards, adds: “Following ‘Brexit’ there may still be unanswered questions, and potential nervousness, for instance – the need for more clarity on the future of EU nationals who have settled in the UK.
Many such tenants and workers in the private sector are waiting anxiously for reassurance. “But, in the meantime, the Bank of England has pegged the base interest rate and given landlords the hope that it will not increase in the immediate future.
And interest in tracker mortgages is soaring to a new level, too.
So the safer haven of ‘bricks and mortar’ looks set to continue as a much less volatile asset.”
Belvoir’s Managing Director, Dorian Gonsalves, agrees but warns that there is still a long way to go to make up for the serious housing shortage.
He says: “Although the property landscape varies from region to region, the fundamental problem is that we still don’t have enough homes to satisfy the extremely strong demand from tenants who prefer to rent and not enough new homes are being built.
“Theresa May has already said she will remain true to the Government’s committed house building policy but the confidence of property investors in the last 12 months – from first-time buyers to experienced landlords – has been badly knocked.
The previous administration’s cut in mortgage interest tax relief meant a bigger tax bill for landlords so the Chancellor’s future approach to property taxation is going to have an all-important impact on our future.