Landlords affected by BREXIT research?

Hi Nat,

Compared to the all out assault on Landlords with Section 24 reduction in mortgage interest relief and the increase in Stamp duty for second homes we have had much less concern from Landlords so far over the effect of Brexit.

I suppose the most common comment is that we will not have the European court to refer injustices against Landlords as a group to go to.

Hi Nat

I’m not currently taking new tenants, as my tenants have no plans to move and I’m not planning to buy any other BTL property at present. However, I do have one really good long term tenant who is an EU national, and his permitted occupier. I happened to see him on the day the Brexit result was announced, and advised him to take British citizenship (he satisfies the residency requirements).

If I were to take any new tenants on, I would not be concerned if they were EU nationals beyond their ability to pass the usual tenant reference. In fact it’s my understanding that under the landlord and tenant elements of the Immigration Act 2016 (which are not yet in force), a tenancy will be automatically ended if the tenant loses their right to remain in the UK. I have no doubt this will be in force by the time any such new legislation which would strip EU citizens living in the UK of their right to remain (which I think might be unlikely) is introduced.

I have had a fair number of EU tenants and as long as they have clear evidence of a job and can pay the rent and first month’s deposit up front, I will continue to regard them as good prospective tenants, Brexit or not. In my experience the Right to Rent checks are a storm in a teacup too, but maybe I’ve just been lucky.

As Neil observes, the rise in stamp duty and the Section 24 issues are far more significant for most landlords, to which I’d also add compulsory landlord licensing, anti-HMO environmental health officers and Article 4 planning restrictions. Brexit is a paltry issue compared to our local politicians’ ability to comprehensively stuff up the rental market on their own. And frankly I’d far prefer to give a tenancy to a polite, hard-working, sensible continental person than a good number of UK citizens, who seems to think the world owns them a living, regard landlords as lower than pond life, and have a massive chip on their shoulder about the supposed indignity of renting their home rather than owning it or being given a massively-subsidised council house paid for by the rest of us.

It’s early days.
Need to see what is going to happen before any decision can be taken on change of approach.