Brexit has cost London landlords £1,800 in rental growth

Mortgage Introducer

January 14, 2019

Landlords in London are potentially £1,806 worse off since the vote to leave the EU in June 2016, the Landbay Rental Index has found.

Using a conservative projection, rental growth in the capital is now 2.84% lower than expected back in June 2016.

This higher estimate would leave the average landlord in London £1,806 short in rent due to subdued rental prices, or £1,217 for the mid-point.

John Goodall, chief executive of Landbay, said: “It’s hard to ignore the impact that the vote to leave the EU has had on property market in London. While tenants are better off, without necessarily realising it, uncertainty in the market has caused a conundrum for landlords.

“Many landlords will have been looking to offset the government’s punitive tax regime by raising rents, however the uncertainty surrounding Brexit has forced the vast majority to forfeit this to maintain a steady income.

“Employment and immigration are the two main concerns for the housing market when considering Brexit. While nobody is any clearer about Britain’s future relationship with the EU, it’s clear the impact of a no-deal Brexit would be significant for the UK economy and property market.”

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