The rental market slowed after Brexit – and estate agents are seeing landlords worried about uncertainty
The rental market stagnated immediately after the Brexit vote, according to a survey by the Association of Residential Letting Agents (ARLA).
The report found that more than one in ten (12 per cent) of letting agents have reported a dip in rent, but 77 per cent said there was no change in rents.
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The demand for rental accommodation increased in June; there was an average of 37 prospective tenants in each ARLA member's branch, up from 33 in May – a rise of 12 per cent. The supply of properties rose by three per cent in June.
David Cox, managing director, ARLA, 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."
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However, it seems many landlords are getting cold feet; nearly half (45 per cent) of letting agents reported they have seen uncertainty from landlords looking to let out their properties.
Cox said: "What we need is come 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."