Friday News #042 – Brexit: What will change after Friday, 31 January?

Friday News 31st January 2020

The property market in the UK is a hive of activity; all outlets are reporting that buyers and sellers are continuing to come back into the market in high numbers and we’re certainly seeing an uptick in investor activity here at TD.

The hot topic this week is Brexit; by 11pm this evening the UK will formally have left the European Union and begin an 11-month transition period, meaning the impact will not be quite as blunt and immediate as many had fretted but change is afoot.

Here’s what we’re seeing in the UK news this week relevant to property and investment:

Brexit: What will change after Friday, 31 January?The UK formally leaves the European Union (EU) at 23:00 on Friday, 31 January. But it will immediately enter an 11-month transition period. During the transition, the UK will continue to obey EU rules and pay money to the EU. Most things will stay the same but there will be some changes. The BBC provides a brief guide here.

Number of tenants negotiating rent reductions at all-time low: “Since the tenant fees ban came into effect, rents reached an all-time high last year… (there has been) a slight drop in the number of agents witnessing landlords increasing rents since then, overall rents remain high and now it seems that tenants are finding it harder than ever to negotiate a reduction in rent.” Read more.

Renters save for holidays rather than a deposit: Renters see going on holiday as a more realistic goal than raising the money for a deposit. These figures support the continued demand for property in the private rented sector.Read the stats and facts.

UK house price growth at 14-month high, says the Nationwide: Both buyers and sellers are returning to the market. Commentators suggest there has been some release of pent-up demand following the clear general election result; “Only when the dust settles will we know for certain how that double stimulus affects prices.”Read more on the BBC.

Buy-to-let business set for growth during 2020, say brokers: The predicted uptick in buy-to-let mortgage business over the next 12 months is largely on the back of landlords expanding their portfolios and strong remortgage levels. Read the full article.

Property Investment Hotspots 2020: For those seeking the best places to invest in UK property in 2020 we have compiled a shortlist of locations that should be included in any discerning investors hunt for an investment property. Click here to read our top property hotspots for 2020

We hope you have a wonderful weekend.