The Brexit deadline is looming, and very soon Britain could leave the EU – or not. It all depends on how the next few days and weeks pan out. But whether we leave at the end of October or at a future date, landlords need to prepare for the changes that Brexit will bring. Here we look at some of the most important.
Right to Rent Checks
According to details published by the government, landlords will need to consider changes to the Right to Rent checks. At the moment, landlords have a responsibility to check the documents of their tenants to make sure they have the right to rent in the UK. After Brexit, the situation will change for citizens of the EU, the EEA and Switzerland.
However, even if the UK leaves without a deal, there will not be any changes to the right to rent for these citizens until December 31st 2020. So the same guidance will stay in place until then.
After this date, you may need to ask these citizens to show that they are able to rent under the EU Settlement Scheme, or they may have temporary leave to remain. So while you don’t have to worry about anything until January 1st, 2021, check again nearer the time to find out if any more changes have been introduced.
The property market has already been affected by Brexit, and it is currently at a weak level due in part to the uncertainties surrounding Brexit. As such, buyers are less keen to put down deposits.
Delays in Brexit could lead to more uncertainty, and prices could fall even further. But this could be a good thing for landlords. With fewer people buying properties, more people will be renting. Because of the lower property prices, this could also be a good time to expand your portfolio.
Mortgages are another area that has been affected. If a recession comes along following Brexit, interest rates will likely rise, and buy-to-let mortgages may become more expensive as a result. This could make it harder for landlords to build portfolios.
Uncertain Times for Landlords
The only certainty around Brexit is that everything is still very uncertain. At the time of writing, it’s not even clear whether we will actually leave the EU. So it’s important for landlords to keep a close eye on the situation and look out for any guidance from the government about how Brexit will affect their activities.
The information here should give you a good idea about the main changes to look out for, but with something that changes as frequently as Brexit, it’s well worth following developments very closely.