Bright fu­ture for in­vestors

Belfast Telegraph - Propertynews - - Home Finder -

LO­CAL let­tings and prop­erty sales fran­chise, Belvoir is pre­dict­ing a brighter fu­ture of re­newed prop­erty in­vest­ment be­cause of Bri­tain’s vote to leave the Euro­pean Union.

The com­pany – the largest of its kind in the UK – be­lieves the prom­ise of a more sta­ble gov­ern­ment is giv­ing new hope for both pri­vate sec­tor ten­ants and land­lords as well as the wider prop­erty market.

Michael Mcgrath, who owns the Belvoir of­fice in Bow Street, Lis­burn says: “We are al­ready see­ing re­newed in­ter­est in prop­erty in­vest­ment and equally high demand from ten­ants.

“The in­di­ca­tions are that money in­vested in prop­erty will con­tinue to work harder than in many other in­vest­ment ve­hi­cles where re­turns can be poor.”

Trevor Burns, who owns Belvoir of­fices on Abbey Street in Ban­gor and on Frances Street in New­tow­nards, adds: “Fol­low­ing ‘Brexit’ there may still be unan­swered ques­tions, and po­ten­tial ner­vous­ness, for in­stance - the need for more clar­ity on the fu­ture of EU na­tion­als who have set­tled in the UK. Many such ten­ants and work­ers in the pri­vate sec­tor are wait­ing anx­iously for re­as­sur­ance.

“But, in the mean­time, the Bank of Eng­land has pegged the base in­ter­est rate and given land­lords the hope that it will not in­crease in the im­me­di­ate fu­ture. And in­ter­est in tracker mort­gages is soar­ing to a new level, too. So the safer haven of ‘bricks and mor­tar’ looks set to con­tinue as a much less volatile as­set.”

Belvoir’s Man­ag­ing Di­rec­tor, Do­rian Gon­salves, agrees but warns that there is still a long way to go to make up for the se­ri­ous hous­ing short­age.

He says: “Al­though the prop­erty land­scape varies from re­gion to re­gion, the fun­da­men­tal prob­lem is that we still don’t have enough homes to sat­isfy the ex­tremely strong demand from ten­ants who pre­fer to rent and not enough new homes are be­ing built.

“Theresa May has al­ready said she will re­main true to the Gov­ern­ment’s com­mit­ted house build­ing pol­icy but the con­fi­dence of prop­erty in­vestors in the last 12 months – from first-time buy­ers to ex­pe­ri­enced land­lords – has been badly knocked. The pre­vi­ous ad­min­is­tra­tion’s cut in mort­gage in­ter­est tax re­lief meant a big­ger tax bill for land­lords so the Chan­cel­lor’s fu­ture ap­proach to prop­erty tax­a­tion is go­ing to have an all-im­por­tant im­pact on our fu­ture.

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