Brexit warning issued by HomeLet chief executive
Brexit is causing concern among landlords, according to HomeLet.
The initial results of HomeLet’s annual landlord survey says nine out of 10 landlords intend to either keep or expand their property portfolio in the next year. However, HomeLet says the potential impacts of Brexit rate highly among landlords’ main concerns, along with the possibility of increased regulation through legislation and changes to house prices.
HomeLet chief executive Martin Totty says: “While more than 90 per cent of landlords intend to either keep or expand their property portfolio in the next 12 months, they are not without their concerns.
“Our initial results show that the three main concerns that landlords have are the macro-economic impacts they face on their finances – further changes to legislation, the potential implications of Brexit and house price values.
“The results suggest that while landlords are not planning to leave the market at this stage, uncertainty over the wider economic picture – especially when Brexit is added into the mix – could easily change this.
“The current, steady growth within the private rental sector suits the needs of both tenants and landlords.
“However, should landlords change their stance and begin to exit the market, therefore reducing the supply of rental properties, there is a possibility that rental prices could rise, as at this stage there is no indication that the demand for rental properties is going down.”
Meanwhile HomeLet’s latest rental index shows the average rent in the UK is now £943, up 1.7 per cent on the same time last year.
When London is excluded, the average rent in the UK is now £780, up 1.8 per cent on last year.
Average rents in London are now £1,632, up by 3.0 per cent on last year.
This month has seen rental prices rise in 11 of the 12 regions monitored by HomeLet, with only the North East seeing a decrease