Since 2014 private renting has increased. According to the English Housing Survey private renting has rose by a staggering 17,500 households per month, on average over the last 10 years. Due to the high demand we have seen rental properties, prices increasingly rise. Many were blaming the rise on Brexit. But was it really post referendum or was there another reason we saw the increase in rental prices?
Throughout 2016 surveys have suggested that demand for rental property is outstripping supply. Findings suggest that demand for rental property remains strong despite the pace of growth in June. The latest report from the Royal Institution of Chartered Surveyors (Rics), gave evidence that the demand picked up pace in July. However, there was a reduction in the number of new properties to rent. “This supply/demand mismatch is expected to squeeze rents higher during the year ahead,” a Rics spokesman said.
Rents were predicted and expected to fall due to the fact that landlords had rushed into buying property ahead of the new stamp duty rates for buy-to-let properties in April. Instead we saw the average monthly rent for a home in England and Wales rise to an all-time high of £846 in July, amid strong demand for let accommodation.
Many feared that this was due to EU referendum vote. Adrian Gill, director of Your Move, said: “The UK’s vote to leave the EU has not caused any immediate change in the rental market, although we must wait for longer term trends to develop. For landlords, market sentiment remains positive with the vast majority still looking to add to their portfolio of properties, despite the Brexit vote.”
Your Move also asked landlords about whether they planned to add to their portfolios following the UK’s decision to leave the EU. It found 72% were equally, or more likely, to buy more properties. This maybe why we have seen the rental rates start to stabilise. It is still uncertain on how the Brexit vote will effect rental prices, or the housing market in general. However, the demand for rental property still remains strong, and while the demand is ever present we will see high rental prices remain.
Top Tip: If you’re looking to expand your rental property portfolio in the North East, speak to one of our experts first!
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