Rental market stable after Brexit

While last month’s vote to leave the EU has not hit the rental market yet, uncertainty amongst landlords could have an impact in the coming months.

According to the Association of Residential Letting Agents, the rental market is stable following the Brexit vote, with little to no movement in terms of rental costs.

Only 12% of agents reported an immediate dip in rent, compared to an overwhelming 77% that saw no change at all.

However, since the result 45% of letting agents have witnessed uncertainty from landlords looking to let properties, which could cause waves in the rental market over the coming months.

David Cox, managing director at ARLA, said: “The rental market has responded to Brexit in a calm fashion, with no immediate fallout amid extreme political and economic uncertainty.

“Although we’ve seen some hesitation from landlords this is relatively mild and it’s important they do not act in haste. Any inevitable longer term changes will then be taken on board with greater ease.”

The supply of available properties and demand for housing remained the same immediately following the result. Two-thirds (67%) of ARLA members reported no change in supply, and a further 64% reported no change in the number of prospective tenants looking for properties.

Cox said: “If one thing is clear following Brexit, it’s that supply and demand remains a real issue in the rental market. If supply continues to dwindle against growing demand, no matter what the eventual implications of Brexit are, renting will become more difficult and expensive for tenants.

“What we need is some certainty from the new Government that housing remains a priority with the rental market playing a central role. For example, we want to avoid a situation where institutional investors start pulling away from the market because ultimately this will impact tenants by squeezing supply further and pushing up rents.”