A June rental market report from The Association of Residential Letting Agents (ARLA) indicates a knee-jerk reaction dip in rent from 12% of its members in the immediate aftermath of the Brexit vote. Despite this, the broader picture immediately after the referendum seems to be one of stability.
According to ARLA members, the supply and demand from tenants remained the same – 67% reported no change in supply, and further, 64% reported no change in the number of prospective tenants seeking homes. Knight Frank also reported that tenant demand remained strong, with viewings in June at the highest level since records began.
However, according to the ARLA, in the weeks following the Brexit vote almost half (45%) of letting agents have witnessed uncertainty from landlords looking to let properties, which could cause waves in the rental market during the autumn and winter.
David Cox, managing director of the ARLA said: “What we need is some certainty from the new government that housing remains a priority with the rental market playing a central [role]. For example, we want to avoid a situation where institutional investors start pulling away from the market because, ultimately, this will impact tenants by squeezing supply further and pushing up rents.”
According to Mr. Cox, one thing that is clear following Brexit, is that supply and demand remains a real issue in the rental market. “If supply continues to dwindle against growing demand, no matter what the eventual implications of Brexit are, renting will become more difficult and expensive for tenants,” Cox said.