Rental market tipped to stay strong, even in the face of Brexit

BrexitThe British rental market is so strong at the moment that even the vote to leave the EU referendum should have little to no effect on its overall health, letting agents nationwide believe.

According to a survey released by the Association of Residential Letting Agents (ARLA), the majority of those operating in the sector believe that the three main factors that contribute to sector health – supply, demand and pricing – will remain unaffected, allowing the market to continue its growth moving forward.

In the survey, some 65 per cent of respondents said that they feel the levels of supply across the nation will not be affected, with landlords still likely to invest despite the decision for the UK leave the EU. This compared to just 22 per cent of letting agents who said they believe the Brexit vote will mean fewer rental homes becoming available.

As well as this, demand should remain steady, the majority believe, with as many as 55 per cent saying there will be little to no negative impact of the Brexit vote on the number of tenants in the market. On the flipside, some 31 per cent believe that the UK becoming less of an attractive prospect for relocation would mean a fall in demand across the PRS.

And when it comes to what tenants are having to pay to live in rented homes, letting agents also believe there will be only negligible changes, with as few as 19 per cent predicting any significant upwards pressure on pricing for landlords in the wake of the Leave vote.
As outlined in the recent Brexit Report, the lettings market hosts a large number of non-UK born citizens and any change in migration policy is likely to have an impact down the line, especially in London. However, our monthly report clearly shows the sentiment amongst members is that the immediacy of this effect is likely to be minimal.

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