Rents in London have not risen by as much as was predicted since the referendum in 2016, according to new figures.
In fact, according to Landbay the capitals rental growth has been almost 3% less than estimated in June two and a half years ago. The estimates on the growth range from 4.15% to 2.84% but even if the higher figure is used landlords in capital have taken in £1,800 less than was anticipated when Britain voted to leave the EU.
It has been a turbulent couple of years for the rental income in London, with the capital experiencing a sharp drop of 1.26% immediately after the referendum. This meant that the rental market experienced a decline of 0.33% over the year. However, the market has been slowly improving ending 2018 on a 0.58% increase.
Uncertainties in the market caused by Brexit has increased the fears over future employment and property markets in London, and a study published by the Office of National Statistics in 2018 found that the number of workers leaving the capital has reached a 10 year high.
Landbays research shows that those who stayed in the capital would have experienced less growth than those outside, with the UK as a whole rising by 0.96% but the UK excluding London rising by 1.16%.
This rise has been led by strong regional growth, with the East Midlands leading the way (2.19%), closely followed by West Midlands (1.48%) and Yorkshire (1.57%). Wales and Scotland have also performed well with growths of 1.57% and 1.48%, almost one and a half times the average for the whole of the UK.
John Goodall, CEO 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, “He continued: “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.”
Landbay compiled their results from website Zoopla by analysing around 100,000 listings.