FSE Midlands: Brexit not a worry for the PRS
Brexit should not have a major impact on the private rental sector (PRS) however potential changes including rental caps and the introduction of a ‘Right to Buy’ for private tenants would according to panellists at FSE Midlands.
The panel, at the Ricoh Arena in Coventry, discussed the impact of Brexit on the PRS with Steve Cox of Fleet Mortgages claiming the “PRS would survive” regardless of what happens with Brexit.
In regards to policy proposals set out by the Labour party, Cox believes these would have a negative impact on the sector.
Cox said: “[These policies] would have a sizeable impact especially the ‘Right to Buy’.
“I do however think it’s unlikely to happen because you would have to legislate that someone’s privately-owned assed can be sold at a discount.
“That principle simply doesn’t sound right, plus of course social housing can’t be created overnight to replace the PRS.
“The threat is there but in my view it won’t happen.”
Members of the panel did however suggest that resolving Brexit in any way might ‘unleash’ pent-up demand into the mortgage market.
Adrian Moloney of OneSavings Bank agreed that the current political impasse was having a sizeable impact.
He added: “Brexit has stopped people from doing things.
“They won’t make a decision until they know what’s going to happen.
“In that sense, resolving Brexit might be seen as an opportunity for mortgage intermediaries.”