What does Brexit Mean for Rent Levels

What does Brexit mean for Rent Levels?

Well, I don’t think Brexit is at all positive for tenants. Indeed, I think rents will likely increase as a result of the vote to leave the EU.

Here are the factors as I see them….

First, nervousness among potential home buyers will have increased. Many people will worry that house prices will be more likely to fall as a result of the vote. This has meant that people will be less likely to buy houses and flats, putting off purchasing for now. And so this will mean a lot of them will continue to rent instead, putting increased pressure on rent levels.

Second, though there was some increased supply of properties available for rent coming through early in the year (as landlords rushed to beat the Stamp Duty Land Tax hike deadline of April 6th), the signs are that new supply has really collapsed since then. The increased taxes that landlords now have to pay on SDLT and more especially on their profits, (due to the removal of loan interest reduction at other than basic rate), is leading to a fall in supply of available properties to rent as some landlords sell up and new landlords stay on the side lines.

Third, I don’t think there will be any significant reduction in the level of demand for rental accommodation as a result of reduced migration, because I don’t think migration will reduce much, if at all. It seems to me that, at least in the medium term, the EU will not let go of the sacred cow of free movement of labour, and if the UK is to get any benefit from trading with the EU, we will have to accept that principal. In the very long term, the EU may one day accept that free movement should perhaps be restricted to countries with similar levels of income, in a kind of “two-tier EU”, but I think that will be years away, if indeed it ever happens.

Getting The Rented Property You Want in the Brexit World

But tenants in the private rented sector can do a lot to ensure that, in this world of even higher demand for rented accommodation, they are near the front of the queue, and are able to persuade landlords to let to them instead of other candidates. There is much they can do to assist this process. My strong suggestion is that they get my book – which contains many helpful tips and guidance. Click here to buy “Tenants’ Guide to Successful Renting”.

You may also like to listen to Tessa Shepperson’s interview with me about the book.

Services from David Lawrenson and Tenants Renting Guide

We help private tenants and landlords  – as well as people and organisations who have dealings with both.

Our advice is completely independent. We take don’t commission payments or fees from third parties, ever.

Services to Businesses and the Public Sector

We advise a range of organisations including banks, building societies, local authorities, social housing providers, institutional investors and insurers. We help them develop and improve their services and products for private landlords and tenants. David Lawrenson, founder of LettingFocus, also writes for property portals, speaks at property events and is regularly quoted by the media. See: David Lawrenson in the Media.

TO JOIN OUR FREE NEWSLETTER Mailing which goes to over 3,950 people (as at Jan 2016) just send an email to info@tenants-renting-guide.com or go to Our Contacts Page.

We do not send spam or sell our mailing list to advertisers, though we occasionally mail landlords about good products from third parties. Please put us on your “white list” to ensure you receive our emails.

TWITTER PAGE My thoughts on property, personal finance, plus a lot of other random things: Twitter 

Buy the book, “<a href="https://www see post.amazon.co.uk/Tenants-Guide-Successful-Renting-Lawrenson-ebook/dp/B01DZUN9Z4/278-0971633-1419134?ie=UTF8&camp=1634&creative=6738&creativeASIN=B01DZUN9Z4&linkCode=as2&redirect=true&tag=lettingfocouk-21″>Tenants’ Guide to Successful Renting”

Home Page

About David Lawrenson

Blog Roll

Useful Links

In the Media (Link opens at LettingFocus.com)

Copyright of Blog: David Lawrenson 2016. Please link to us here or quote us. We actively pursue copyright infringements. The blog is updated roughly once a week.

, , ,

No comments yet.

Leave a Reply