After the Brexit referendum sailed through, it was certain that uncertainty was the order of the day, at least as far as the economy was concerned. True to those fears, the economy did take a bit of hit with the pound weakening some against major world currencies. With that came a bit of a shake up in the housing market.
Thankfully, however, the real estate sector has been hit as badly as was expected. That, however, does not mean that there aren’t some changes being felt on the ground. Here are different ways defining how Brexit affects your HMO.
You could get your hands on better properties
If prices drop or remain uncertain for much longer, more and more people will look to sell. This essentially makes it a buyer’s market and savvy investors such as yourself could get their hands on better properties. Places such as London and Chelsea make up the list of elite areas to watch for bargains.
You could get more clients
With the pound weakening over time, it will be easier and cheaper for most people to visit the UK. This puts HMO owners in a unique position to attract and rent out to more holiday makers who might just bring in better revenue than local renters, albeit periodically.
You get better loans
The Bank of England dropped the base-lending rate and BTL lending activity has significantly dropped as well ever since the stamp duty surcharge came into play. This means that more and more lenders will likely be looking for ways to compete for your business, thus making it a favourable lending environment as far as you are concerned. You can find better loans at better rates now and use that money to buy better HMO properties. You could also refinance and greatly improve your bottom line.
You could get long-term tenants
Before the dust fully settles, the most pragmatic of people will most likely decide to let rather than buy. This means that you may have more and more people looking for better HMO properties in which to live or you may have your tenants looking to extend their lease periods, at least until the economy stabilizes and all these Brexit negotiations take a firm and clear direction.
You might see better returns over time
With the increase in demand for rental space, landlords who hold their ground and decide to weather this storm might just see an increase in their income over time. This will be as a direct effect of the ‘let’s wait and see’ attitude that many potential homebuyers may take because of the Brexit turmoil.
The housing market in the UK has a foundation of strong financial fundamentals that will ensure it stabilizes with time and that it is not so adversely affected. With this in mind, HMO owners can rest a little easier knowing that things are bound to get better with time.