Buy-to-let, Brexit and the General Election

Buy-to-let, Brexit and the General Election

Unless you’ve been living under a rock for the past few years, you’ll have heard about Brexit. The UK’s proposed exit from The European Union (EU) has absolutely dominated headlines for almost three years now thanks to the delays, controversy and uncertainty that have come with it.

​The UK decided to leave the EU back in 2016 after a public referendum. Voting took place on June 23rd, 2016, with over 30 million people voting either to leave or remain in the EU, with leave coming out on top with 52% of the votes compared to remains’ 48%. The vote to leave the EU resulted in then Prime Minister David Cameron stepping down and being replaced by Theresa May. Upon her appointment as PM, Theresa May triggered article 50 – the formal process to leave the EU – and set a date for March 29, 2019.

After numerous rejected Brexit deals and deadline extensions, Theresa May stepped down from her position as Prime Minister to be replaced by Boris Johnson, who pledged to deliver Brexit ‘do or die’, ‘come what may’ and ‘in all circumstances’ on October 31, 2019, but once again the deadline passed and the UK still remain in the EU with a new Brexit deadline of January 31, 2020. After failing to gain the necessary support on his recent Brexit deal, Johnson called for a general election in the hope of breaking the Brexit stalemate. The next general election will take place on December 12, 2019.

To say Brexit has been a strenuous process would be an understatement, and it has taken its toll on the UK economy as a whole. Despite the vast economic uncertainty, Britain’s property market has continued to stay strong, with the buy-to-let market in particular consistently delivering solid returns. This is a testament to the strength of the buy-to-let market itself, even with tax breaks, new legislations and Brexit it continues to beat out numerous other types of investment. The average property price of property coming onto the market has dropped by approximately 1.3%, offering the perfect opportunity for buyers and investors.

Miles Shipside, Rightmove director and housing market analyst, commented: ‘I’ve seen lots of unusual events affecting the property market in my 40-year career, but a Brexit deadline followed by a snap general election six weeks later is obviously a new combination for me and for many thousands of buyers and sellers.

‘Elections normally dampen activity as uncertainty causes a degree of hesitation, but this one is being called to try to break the deadlock after three years of uncertainty. A more certain outlook, whatever it may be, would be a welcome change for those who are contemplating moving.’

The uncertainty has proved to be advantageous for buy-to-let investors, however, with the upcoming General Election and Brexit deadline closing on us, it seems that the long period of uncertainty is coming to an end. Are you interested in investing in buy-to-let property? Take a look at some of our best recent investment opportunities here!

Spread the word: