The rental market was ‘calm’ after the Brexit vote in June with supply, demand and the cost of renting staying broadly flat horizontal across the board, the Association of Residential Letting Agents (ARLA) June Private Rental Sector report has indicated.
Three quarters of agents reported no change in rent in June, 67% of ARLA members said there was no change in supply and 64% approximate there was no change in the number of prospective tenants looking for properties. The average of prospective tenants per ARLA member Branch in June was 37, a rise from 33 in May.
“The rental market has responded to Brexit in a calm fashion, with no immediate fallout amid extreme political and economic uncertainty’’ said David Cox, managing director of the Association of Residential Letting Agents:
“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.
“Although we’ve seen some hesitation from landlords this is relatively mild and it’s important they do not act in haste. Any inevitable longer term changes will then be taken on board with greater ease.”
The supply of rental properties meanwhile rose by 3% to 176 per branch.
Cox added: “If one thing is clear following Brexit, it’s 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.”
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