Landwood Property Auctions has advised property investors to sit tight during the potential recession that is upon us in the UK and give it time before making any decisions about leaving the market.
The company has seen an increase in properties going into receivership over the past few months, a reluctance from banks to lend as much as they had been a year ago and the construction sector also struggling.
Mark Bailey, Director of Landwood Group, has noted: “It is harder for property owners to let business space; for domestic landlords to find tenants… there’s no doubt there is a squeeze on.
“With each failed building project, banks become more nervous to lend, builders stop building… and we fall headlong into a dreaded recession. Once we do, it’s anyone’s guess how deep it is or how long it lasts.
“The blame for all of this cannot be put at the door of Brexit… well, not entirely. There is no arguing with the fact that this is a period of change – domestically and globally. People err to the negative whenever there is change on the horizon – until events transpire and the scales balance out. The big issue is uncertainty.”
His advice to property investors, whether you are a commercial property owner or a domestic landlord, is to keep going and wait to see what happens over the next six months before making a decision. He points out to look at your borrowings and not over-stretch yourself.
Cash buyers, in particular, may benefit from such a downturn in the market, so long-term investors in this position should keep an eye open for a ripe time to buy.
Bailey concludes: “For the rest of us, it’s time to batten down the hatches and ride out the storm – see you on the other side.”