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Brexit has undoubtedly had an impact on the UK property market with prime London locations in particular being affected. However, a month on from the vote and we are still seeing big shifts in landlord behavioural patterns. Now it is being reported that the number of houses up for rent has really spiked, with central London seeing an increase of 22%. Many are putting this down to the landlord buying spree we experienced ahead of stamp duty rises in April.
Sam Mitchell, Rightmove head of lettings, says that the increase in March transactions was “good news” for tenants seeking properties. However, they did advise that it might be shortlived as landlords decided whether to invest further.
“Our own research among landlords shows that just under a third of them are concerned that stamp duty changes, plus the forthcoming tax relief changes, will potentially wipe out their profits,” he said.
“Once tax relief changes start to be phased in from next year, new buy-to-let activity could slow further.”
With such taxes having a rippling affect on mortgage applications and lending the figure of 22% could be on the rise even more over the course of the coming months, seeing the price of rents also increase.
“If confidence in buying houses does falter, it could lead to more people looking to rent, perhaps in the short term, and that would mean that rents could rise further” Mitchell continues.
As a result in this increase the whole property hire market is having to pull there socks up, streamlining advertising methods, property management procedures as well as sourcing other outside vendors.
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