Tenants win £1.8k rental Brexit dividend

first_imgThere may be gloom and doom as the pressure piles on to property agencies, buyers and tenants, but there’s one good news story – tenants in London are, potentially, £1,806 better off since the vote to leave the EU in June 2016 – according to the latest Landbay Rental Index, powered by MIAC.Believe it or not, using (says Landbay) a conservative projection, rental growth in the capital is now 2.84% lower than expected back in June 2016, but this could be as high as 4.15%. This higher estimate would leave renters in London with an extra £1,806 due to subdued rental prices, or £1,217 for the mid-point.The capital’s property market, which, some say, suffered disproportionately from uncertainty since the referendum, has experienced average annual rental growth drop from 1.26% in June 2016 to a low of -0.33% June 2017, before starting a slow recovery in February 2018 (0.05%) up to 0.58% in December 2018. The rest of the UK has largely stayed in line with expectations for growth, with the drop in rental price growth being confined to London.The national pictureThe average rent grew by 0.96% in the year to December 2018. The national picture continues to be weighed down by slower growth in London (0.58%) on otherwise resilient rental growth in the rest of the UK (1.16%).Rental growth in Wales (1.57%) and Scotland (1.48%) is growing more than 55% faster than the UK (0.96%) and nearly twice the rate of growth of Northern Ireland (0.75%).On a regional level, rental growth in the East Midlands (2.19%), West Midlands (1.48%) and Yorkshire and Humberside (1.40%) continue to lead the way in terms of rental growth, while growth in the North East (0.01%) continues its downwards trend toward falling rents.John Goodall, CEO, Landbay said, “It’s hard to ignore the impact that the vote to leave the EU has had on property market in London. While tenants are better off, without necessarily realising it, uncertainty in the market has caused a conundrum for landlords.“Many landlords will have been looking to offset the Government’s punitive tax regime by raising rents, however the uncertainty surrounding Brexit has forced the vast majority to forfeit this to maintain a steady income.“Employment and immigration are the two main concerns for the housing market when considering Brexit. While nobody is any clearer about Britain’s future relationship with the EU, it’s clear the impact of a no-deal Brexit would be significant for the UK economy and property market.”London rental market Landbay tenants rental growth Brexit dividend January 15, 2019The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Housing Market » Tenants win £1.8k rental Brexit dividend previous nextHousing MarketTenants win £1.8k rental Brexit dividendThere may be gloom and doom with property agencies, buyers and tenants. But tenants in London are, potentially, £1,806 better off since the vote to leave the EU in June 2016…Sheila Manchester15th January 201901,332 Viewslast_img

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