Breaking up is so hard to do
The UK vote to leave the European Union left many landlords, even those who had so confidently voted ‘Leave’, in shock.
Despite London, Scotland and Northern Ireland all voting to stay in the EU, the ‘Remain’ votes overall secured only 48% of British votes.
The ‘Leave’ votes had it with 52%.
The announcement that we are going to ‘brextricate’ ourselves from Europe sent shockwaves through our economic and political sectors. It looks like these promise to spread throughout our society too.
Even those who should have been partying at the parting seemed slightly dazed and confused.
Boris Johnson’s celebratory speech was delivered in a stupor much deeper than his characteristic style allows for, and with a certain tinge of what sounded like embarrassment tinged with regret.
The Prime Minister jumped ship, announcing his intention to resign by October, in a speech spiced with nautical themes that were all too appropriate for the predicted rough seas ahead.
“I will do everything I can as prime minister to steady the ship over the coming years and months, but I do not think it would be right for me to be the captain that steers our country to its next destination.”
The British pound
Our currency immediately took a pounding. The rough seas of finance left it washed up on the shores of our island at its lowest level against the dollar since 1985.
House building shares
Significantly shares in housebuilding schemes in the UK also took an immediate hit.
But, what will Brexit actually mean for the UK’s house prices, rental sector and the return on investment for landlords?
It’s not a straightforward question to answer, yet, in this and an accompanying article, I’m going to at least lay out the issues that we may face in the next few years.
What did landlords want?
Just before the vote on the 23rd June the National Landlord Association (NLA) polled landlords to try and get a sense of what they wanted.
It appears that landlords as a sector were as unclear, divided and confused as the nation itself.
When asked if EU membership would be beneficial to their future business prospects the response was equally divided.
It is worth noting here that the geographic splits amongst landlords mirrored those in the population at large that were observed in the referendum.
What happens now?
In my accompanying article I am going to nail down the areas that will be critical to landlords and their investments as we make our move out of Europe.
Here, I’d just like to comment on one thing we can all expect in the immediate future:
If you’ll allow me, I will add another:
The shockwaves that rippled immediately through our economy are likely to continue for at least two and a half years.
This is the current timetable for a successful, or not, Brexit.
And, of course, stable growth is what every investor looks for in long-term investments such as property.
Landlords will need to buckle themselves in because this could prove to be a long and bumpy ride.
How can you protect yourself from the shockwaves?
In times of uncertainty we yearn for certainty.
I can offer you this.
In the next period of turmoil wouldn’t you prefer to never have to worry about the ins and outs of letting a property but still benefit from your investments?
Khalil’s Rent Guarantee Scheme will pay you a guaranteed rent month in and month out, regardless of whether your property has tenants or not.
You lease your property to us for a few years and we pay you guaranteed rent.
It’s as simple as that.
No risk, no uncertainty, no nasty surprises.
The best way to avoid being hit by the inevitable shockwaves of Brexit is to find a very safe haven somewhere for your investments.
Sit back and let us take the strain.