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Landlords and tenants unfazed by Brexit

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The rental market remains stable immediately following the UK's decision to leave the EU
Landlords and tenants unfazed by Brexit

The rental market hasn’t yet been rocked by last month’s Brexit result, according to the Association of Residential Letting Agents (ARLA).

In its June Private Rental Sector Report the trade association said that the rental market remains stable, with little to no movement in terms of rental costs since the vote.

While a tenth (12%) of agents admitted an immediate dip in rent, an overwhelming three quarters (77%) saw no change. This is contrary to expectations, as before the result a fifth (19%) of letting agents predicted rents would increase, and a fifth (20%) expected them to fall. However three in five agents correctly thought they would stay the same.

Supply and demand stable

The supply of available properties and demand for housing is also unshaken by the prospect of Brexit, staying broadly the same immediately following the result. Over two-thirds (67%) ARLA members reported no change in supply, and a further 64% reported no change in the number of prospective tenants looking for properties.

However, since the result almost half (45%) of letting agents have seen uncertainty from landlords looking to let properties, which ARLA warned could ’cause waves in the rental market over the coming months’.

David Cox, managing director of the Association of Residential Letting Agents, said: “The rental market has responded to Brexit in a calm fashion, with no immediate fallout amid extreme political and economic uncertainty. What we need is some 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.

“Although we’ve seen some hesitation from landlords this is relatively mild and it’s important they do not act in haste. Any inevitable longer term changes will then be taken on board with greater ease.”

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