Finance and property advisory firm Nova Financial has reported a record month for buy-to-let transactions in June, despite last month’s shock Brexit vote.
The company’s Managing Director, Paul Mahoney, has experienced a surprisingly positive reaction from landlords in the face of the leave vote, and believes that this confidence will continue throughout the rest of the year.
Record Month for Buy-to-Let in June, Despite Brexit
“The response we’ve received from clients who are in the process of purchasing buy-to-let properties following the Brexit vote has been far more positive than one might expect, and most are of the opinion that it is business as usual,” he says. “In fact, we at Nova Financial posted a record month for transactions in June, with more of the same expected for July.”
Indeed, recent reactions from those in the property industry suggest that landlords could in fact benefit from the Brexit outcome.
However, Mahoney believes that the confidence shown by his firm’s clients is due to their interest in cities such as Manchester and Liverpool, which form part of the Northern Powerhouse. Additionally, the North East has shown resilience following the Brexit, with house prices up by 4.8% over the past month.
Despite this, there are concerns within the sector that the Northern Powerhouse scheme may be in danger now that David Cameron has resigned and Chancellor George Osborne’s career remains uncertain. If the scheme does fail, investors in these areas could see their returns dampen.
Although confidence in northern cities has remained strong following the vote, Mahoney reports that landlords seem more concerned about the referendum’s effect on the London property market.
“It seems buyers are more concerned regarding the potential negative impact on the London market, as opposed to other cities,” he states. “We as property advisors agree with this attitude and view the London property market outlook as fairly sombre, whereas the main northern cities still provide very strong fundamentals.”
While investors and advisors may be feeling uncertain about investment in the capital, one investment firm insists that the London property market will prove resilient to the Brexit.
If you are considering a buy-to-let investment in the near future, which area will you choose?