Despite uncertainty around the property market post-Brexit, investor confidence in the lending environment remains unchanged, according to Shawbrook Bank.
A survey among 128 of its clients at the beginning of the third quarter found 57 per cent of property investors are feeling confident or fairly confident about the lending environment over the next six months, compared to 58 per cent of a similar survey of 174 clients during the first quarter.
This confidence was reflected in the proportion of investors looking to buy an additional buy-to-let property over the next year - 58 per cent compared with 56 per cent - suggesting Brexit has not had an immediate impact on people’s attitudes towards property investment.
While the EU referendum result may not have de-railed investor plans, it is still cited as the biggest challenge this group will face over the next year - with just under a third of respondents.
While the majority (44 per cent) were unsure of what impact Brexit will have and how the subsequent changes to property prices and market competition will impact them, 42 per cent thought the result will negatively impact property investors. Only 14 per cent said the vote would have positive implications.
Similarly, property investors are feeling a lot less confident about the prospect for the UK economy, with 48 per cent fairly concerned or very concerned about the economic outlook, an increase of 19 per cent from six months ago.
Investors that are more negative in their outlook believe that falling house prices would be the main negative consequence of the result (54 per cent), followed by decreased competition (23 per cent).
In contrast, for those that predict positive outcomes, most see decreased competition in the market due to uncertainty as the main positive consequence (37 per cent), followed by less regulation and red tape (24 per cent) and falling house prices (20 per cent).
Property prices are one area which property investors expect to see significant changes over the next six to 12 months.
In January, 67 per cent of property investors predicted a small increase in property values and 6 per cent predicted a small decrease. The latest figures reveal that 42 per cent are now anticipating a small decrease in prices, while only 21 per cent are predicting a small increase over the next 12 months.
Stephen Johnson, deputy chief executive and managing director of property finance at Shawbrook Bank, said he has not yet seen any real change in customer behaviour.
“While the aftermath of Brexit provides uncertainty for landlords, with many waiting to see the impact on house prices, tenant demand and housing supply - there is also opportunity, with investors potentially benefiting from this pricing drop to secure property more cheaply,” he commented.
peter.walker@ft.com
