No Brexit woes for rental markets, agents and valuers report

There has been no slowdown in the rental market after the Brexit vote, agents Your Move have reported. In a separate report, part of the Connells Group said that valuations activity on behalf of buy-to-let investors has enjoyed a “Brexit bounce”. According to Connells Survey and Valuation, it undertook 12.7% more valuations for buy-to-let investors than the previous month. However, valuation activity for this sector was down 19.7% year on year. But, taking heart from August’s growth, Connells said that the market had absorbed tax changes put in motion by George Osborne, and which had choked off activity previously. It said: “Although the restriction of tax relief on mortgage finance costs to basic rate tax only, the removal of 10% ‘wear and tear’ allowance, and the introduction of additional 3% Stamp Duty surcharge hit the sector following the 2015 Budget and the last Autumn statement, the August rebound suggests the Government’s changes are set to have been a short-term problem for the sector.”

According to Your Move, average private rents in England and Wales reached £846 in July, an average rise of 5.2%, and the highest rent ever recorded by Your Move. Worryingly for tenants in the south-east, however, rents rose almost 15% in the 12 months to the end of August. Your Move suggested the 14.9% rise reflected tenants moving out of London to escape high rents in the capital. In London, the average rent is £1,273. The firm said that its figures suggest that the UK’s decision to quit the EU has had “limited impact” on the rental market in England and Wales.

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