The current Landbay Rental Index has shown that landowners in the capital have faced a potential value of £ 1,806 since the June 2016 exit vote.
According to the report, letting growth in the capital using a conservative forecast in June 2016 is 2.84% lower than expected, but could be as high as 4.15. This higher estimate would mean that the average landlord in London will leave a rental charge of £ 1,806 or £ 1,217 for the interim rent due to restrained rental prices.
The capital market, which has suffered disproportionately from the uncertainty since the referendum, recorded an average annual rental growth of 1.26% in June 2016, a low of -0.33% in June 2017, before a slow recovery in February 2018 entered (0.05%). in December 2018 up to 0.58%.
The rest of the UK remained broadly in line with growth expectations, with the decline in rental growth limited to London.
The national picture
The average rent for a property in the UK rose by 0.96% in December 2018. The national picture continues to be adversely affected by slower growth in London (0.58%) due to otherwise resilient rental growth in the rest of the United Kingdom (1.16)%).
Rental growth in Wales (1.57%) and Scotland (1.48%) is growing more than 55% faster than in the United Kingdom (0.96%) and is almost twice as high as in Northern Ireland (0.75%).
At the regional level, rental growth in the East Midlands (2.19%), West Midlands (1.48%) and Yorkshire and Humberside (1.40%) continues to be leaders in rental growth, while growth in the Northeast (0 , 01%) continues its downward trend towards falling rents.
John GoodallLandbay CEO and Founder said, "It's hard to ignore the impact that the decision to leave the EU had on the housing market in London. Although tenants are better off without necessarily realizing it, the uncertainty of the market has created a mystery for landlords.
Many landlords have sought to offset the government's punitive tax system by raising rents, but Brexit uncertainty has forced the vast majority to abandon this in order to maintain a stable income. Employment and immigration are the two main problems for the housing market, considering Brexit. While no one is clearer about Britain's future relationship with the EU, it is clear that the impact of no-deal-Brexit on the UK economy and real estate market would be significant.
Brokers must access the current landscape and provide their clients with insight into potential problems that may arise for them in the future. Despite declining rental growth, the market continues to be resilient. "