The uncertainty of Brexit is already having an impact on house prices in the UK.
With prices falling in London and declining slightly elsewhere in the south-east, we need to understand how Brexit is going to impact the private rented sector in the UK.
The number of renters in the UK are growing day by day. Now, around a 5th of the UK’s population rents from a private landlord.
There's nothing that strikes fear into the heart of a tenant than the fear their landlord is going to raise the rents up. This is what Uncertainty over Brexit has mainly caused.
Look at the other impacts of Brexit uncertainty over Tenancy Market
The uncertainty of Brexit, the eye-watering deposits needed to buy a house, cautious lending and the burden of stamp duty costs mean many people are struggling to get on the ladder and will instead continue to rent.
· The Brexit uncertainty has made some of the landlords to put the rents up to cover the costs of the impact.
· The confidence in buying will remain low due to Brexit and a lack of new construction stems from its implications.
· The young people in particular started to re-think on their approach to housing and taking on financial risks like a 95 per cent mortgage.
· The three per cent additional stamp duty hike on buy-to-let homes owned by small landlords are another factor set to contribute to rising rents.
· New build-to-rent developments also pushing up the average rent across London.
See how the Statistical Report on Rental Hikes is predicted for the coming Years
The tenants will face a 15.9 per cent rise in rents in London by 2023 compared to house price growth of 4.5 per cent over the same period of time.
Rents set by private landlords are naturally capped by wage growth and affordability levels. This will switch over the next five years. Britain, led by London, will see rental growth outpace property price inflation.
According to the data, the rents will rise by 11.5 per cent across the UK over the next half decade and 15.9 per cent in the capital.
According to latest statistical reports the districts across Greater London that recorded the biggest rental rises over the last year are:
· Shepherds Bush
· Elephant and Castle and Victoria.
These areas are also hotspots for build-to-rent.
Renting is becoming more popular trend. This contributes to higher rents.
How Brexit will affect renters really depends on two things:
1) Your landlord
2) Whereabouts you live in the country.
The dip in the economy that has been caused by Brexit is a big issue. It’s a problem in terms of affordability. If people lose their jobs or their hours are cut that will cause issues.
Your views on Brexit are fixed by where you sat on the referendum. The impact of Brexit is causing discomfort among even the most ardenBack