Landlords Remain Bullish on UK Property Despite Brexit and Lockdown

UK landlords remain bullish about growth of the UK market despite both Brexit and a global pandemic, according to our latest research.

A recent poll of our database of property investors and landlords revealed that more than a quarter (27.2%) believe UK house prices will grow by more than 15% over the next five years and more than one in three (34.7%) believe the market will achieve modest growth (up to 14%).

These figures are only slightly behind those that the developer found previously at the beginning of 2019 when polling 450 high net worth individuals about their thoughts on how Brexit would affect the market. From those results, two in three (64%) agreed the UK market would be ‘good’ to ‘very strong’ in five years’ time.

Interestingly there is a close split when it comes to market growth over 18 months, although the majority – just over half at 53.3% – believe the market will be stronger after this period. Again, this draws parallels to sentiments at the height of Brexit talks where 55% believed the market would be good to very strong and, in the midst of a property ‘boom’, it appears they were right.

Andy Foote, director at SevenCapital commented: “These poll results show us two things. First of all it shows us that people understand the UK property market and its cycles, so they aren’t blinkered by a political event that might cause a momentary crash.

“The second thing it shows is exactly why the UK market is so resilient, because at the end of the day people have the power to make or break the market. If people remain confident and keep buying and investing then the cycle continues, it’s only when confidence is lost that the market falters. Thankfully, there are more people in the UK and across the world that maintain a steely confidence in the UK and that’s what makes it one of the best and most stable markets globally in which to invest.”

These figures line up with many of the predictions and current research from PLC’s regarding UK property and rental prices.

In the latest RICS survey for example, every region in the country recorded a rise in house prices in September – hitting an 18-year high. At the same time, we’re seeing no slowdown in demand, even as priorities change for both homebuyers and tenants. 

This is reflected in JLL’s predictions for the next five years, which see regional cores such as Birmingham, Nottingham and Glasgow driving incredible growth in terms of both property and rental prices.