Now that the Brexit dust has settled, it's a great time to look at the opportunities presented by this game-changing economic event.
The lettings sector has always proved to be very resilient and robust when it comes to change and shock, largely because there is a supply/demand imbalance in the U.K., and that is not set to change for the forseeable future.
Our franchisees will be looking at the Brexit challenges and adapting accordingly to ensure that their businesses continue to thrive.
Here are 5 reasons why Brexit could be positive for lettings agents.
1. The term "Brental" has already been coined and refers to those people who are unsure about buying in the aftermath of Brexit, and will continue to rent or delay buying their own home until the situation becomes clearer to them. This means that plenty of people will be remaining, or even moving, into the private rented sector.
2. The weak pound is attracting overseas investors into U.K. property because, in some areas, it means they can buy at around 10 to 15% cheaper than before the EU Referendum. These "remote" landlords will want their properties fully managed.
3. Low interest rates - and possibly lower ones to come - are attracting new landlords into the sector and existing landlords to buy more property, meaning lettings agency services will continue to be in demand.
4. The new Government under Teresa May includes a new Chancellor and a new Housing Minister who will bring fresh thinking to the sector, Philip Hammond being a landlord himself. The new "Open for Business" mandate is set to attract large companies to operate from the U.K. and they will need accommodation for their staff. The reduction of corporation tax indicated by George Osborne before his departure will also help small businesses.
5. Strong networks always weather the storms of uncertainty. Belvoir is now the largest property franchise network in the U.K. and our franchisees have the security of knowing that there is a hive mind of knowledge and experience to support them through challenges. As a trusted brand on the High Streets of Britain for 20 years now, landlords know that they are in a "safe pair of hands" with Belvoir.
See our other blog - Brexit has had an interesting impact on our market sector
Whatever happens in the economy, having a roof over your head will never go out of fashion, which is why we call property an "eternal business".
The latest English Housing Survey suggests that the private rented sector currently consists of 4.3 million households. With 97% of landlords being amateur or small (3 properties of less)*, and wanting the services of a lettings agent, this gives a scale of the marketplace.
You can also find out out more by downloading the Times report, "The Future of Franchising" which was published in March and features Belvoir.
*Statistic from HomeLet.
Belvoir is an award-winning estate and lettings agency with over 300 successful offices around the U.K. If you would like to talk about being our next success story, please call us on 01476 570000 or email us on firstname.lastname@example.org
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