Commentary by Ruban Selvanayagam
Happy New Year!
As we move into 2019, if you haven’t had the chance to take a look, it’s worth reflecting on the various pieces of commentary kindly provided by over 60 property experts, investors and developers. Of course, making predictions on the future of the property market is often based but nonetheless worth observing.
In the coming month, we should also expect some form of response in relation to Brexit. Yet the waters remain cloudy, particularly in relation to the direction of the economy and the housing market in general. There is a stronger argument that a ‘no’ or ‘bad’ deal Brexit could trigger what a range of think tanks affirm will be an economic downturn. For property investors and developers, a tanking Sterling value could prompt the Monetary Policy Committee to hike up base rates. Not only will this affect affordability for those seeking to purchase or remortgage, but also those on variable and tracker rate mortgages.
Moving into 2019, evidence suggests that most rental property acquisitions will be made through Limited companies (Special Purpose Vehicles). This comes not only in response to Section 24 but also as part of the wider professionalisation of the sector – which, to a certain degree, should be welcomed. Indeed, for cash-rich / low-geared portfolio investors, the impending shake-up could be a unique buying opportunity.