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Rental Market Remains Stable in the Wake of Brexit

The rental market remains steady following the Brexit vote as rents, supply and tenant demand did not significantly change in July, says a new report.

The rental market remains steady following the Brexit vote as rents, supply and tenant demand did not significantly change in July, says a new report.

The latest monthly report released by the Association of Residential Letting Agents (ARLA) found that whilst just 12% of agents reported a dip in rent, a staggering three quarters (77%) saw no change in rental costs.


The latest figures refute the assertions of a fifth of landlords (20%) who predicted rents would fall when assessed prior to the referendum, and the other 19% who predicted a rent increase. 61% of landlords predicted that the rental rates would stay the same.


In a similar fashion, the supply of properties and demand for housing remained unchanged immediately after the vote as two-thirds (67%) of ARLA members reported no change in supply, and a further 64% reported no change in the number of prospective tenants looking for properties.


However, a shadow of ambiguity still hangs over the rental market as nearly half (45%) of letting agents witnessed uncertainty from landlords looking to let properties.


Fewer entrants to the rental market could put further pressure on rents, as supply falls short of the substantial demand from tenants. Alternatively, it could cause “waves” in the rental market over the next few months, says ARLA.


The report also shows that on a monthly basis, demand for rental property was up in June, also accompanied by a surge in supply of properties managed on letting agent’s books.


In fact, figures from June show that there were 37 prospective tenants on average per ARLA member branch, a 12% rise from 33 in May. Supply also rose in June, from 171 properties available in May to 176 – a 3% increase.


ARLA’s findings also reflect Homelet’s June Rental Index figures, which found that demand for rental property was strong in June as rents continued increasing over the month despite Brexit fears.

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