A majority of letting agents do not expect a major shift in the rental market if the UK votes to leave the EU.
According to the May rental report from the Association of Residential Letting Agents, lettings agents do not believe supply, demand, or rental costs will be significantly affected in the event of a Brexit vote.
Two-thirds of ARLA agents expect supply to stay the same if the UK votes to leave the EU, compared to just a fifth who predict it will fall as international landlords pull out of the market.
A third see demand decreasing, as relocating to the UK becomes a less attractive prospect, but over half think it will remain as high as it currently is.
In London, almost half of agents expect the number of prospective tenants per property to fall in the event of a Brexit vote as international demand weakens.
While just over a quarter of agents expect a Brexit result will cause upward pressure on rent costs, the majority don’t imagine a massive change for tenants’ rents, should Britain leave the EU.
David Cox, managing director of ARLA, said: “There is no avoiding the EU Referendum at the moment and whatever the outcome, we are likely to feel the impact of the fallout of this debate in different ways. However, it’s important to put this into perspective and not get carried away in a zeitgeist.
Stamp duty reforms
Since the stamp duty changes came into effect a third of agents have reported a fall in supply of buy-to-let properties.
This increases significantly in Wales, where 80% of agents saw a dip in supply in May, as well as East Midlands and Yorkshire where half of ARLA agents have seen a decline.
Looking forward, nearly half (48%) of agents expect supply will continue to fall as more landlords walk away from the market as a result of the mortgage interest relief changes coming into force next year.
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