What is the biggest challenge for property investors in 2016?

What is the biggest challenge for property investors in 2016?

Regulatory changes are predicted to be at the forefront of challenges facing property investors this year, according to the latest Shawbrook Broker Barometer, which captured the views of over 300 brokers.

Half (50%) of brokers see regulation as the issue that will impact their clients the most, while around a fifth (21%) think that a change in interest rates could be the most important issue. Additional licensing is also expected to be an issue for brokers and clients, with a tenth (10%) expecting the changes to present their biggest challenge for the year.

When thinking about their own business, brokers are most apprehensive about increased FCA governance and further lending restrictions in the market, 39% and 26% respectively. Unsurprisingly brokers are viewing the new stamp duty levy with apprehension with 80% expecting the changes to have a negative impact on the housing market and the lending environment generally.


Despite these challenges the mood amongst brokers remains positive with 85% stating they are confident about business growth in the New Year. Over half (54%) believe that the new help-to-buy shared ownership scheme will have a positive impact on the housing market. Nearly two thirds (63%) are also in favour of the new London help-to-buy programme and three quarters (75%) believe the Government’s pledge of 400,000 new homes by 2020 will provide a boost to the market and lending environment.

Karen Bennett, Sales & Marketing Director Commercial Mortgages comments: “While it is obvious that 2016 will see some big changes in the Buy-to-Let (BTL) market, it appears that brokers are not buying in to the commentary that the market will suffer. The majority of our broker partners are confident that the market is one in which their business can grow and BTL presents many opportunities to investors. Lenders, brokers and customers will have new factors to consider but the outlook for 2016 remains positive.”

Join our mailing list:

Leave a comment



Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

view article
Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article

Related stories

More articles from Property