2019 Renting in London forecast: 2 key reasons why Brexit uncertainties set to push average rents up faster than house prices
Pockets of value: the best-value postcodes for renters within every London borough
January 11, 2019The shaky Euro Zone.
January 16, 20192019 Renting in London forecast: 2 key reasons why Brexit uncertainties set to push average rents up faster than house prices
How Brexit uncertainty will impact renters
“Amidst a volatile political and economic landscape, the hesitance of buyers and sellers to act is completely understandable,” says John Goodall, co-founder of buy-to-let specialist Landbay.
“As we wait to see how Brexit uncertainty unravels, the private rental sector will play a more important economic role than ever as it provides flexibility and value to renters and landlords alike.”
Ryan Prince of UNCLE agrees: “We think rents are actually likely to rise further, particularly in London, for two main reasons – firstly, confidence in buying will remain low due to Brexit and a lack of new construction stemming from its implications.
“Young people in particular will re-think their approach to housing and taking on financial risks like a 95 per cent mortgage.”
Stamp duty changes
Recent stamp duty hikes are another factor set to contribute to rising rents. The Conservatives introduced three per cent additional stamp duty on buy-to-let homes owned by small landlords and also scrapped interest rate relief on buy-to-let mortgages.
“We think landlords will seek to increase rents in an attempt to earn back what they feel they’ve lost,” says Prince.