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Stamp Duty and Brexit Uncertainty Boosted Demand for Rental Properties

Supply and demand of rental properties has markedly risen following the vote to leave the European Union and the introduction of higher Stamp Duty rates, says new research.

Supply and demand of rental properties has markedly risen following the vote to leave the European Union and the introduction of higher Stamp Duty rates, says new research.

A new report by estate agency Knight Frank shows that the firm’s new tenancy agreements for August, within the prime central London lettings market, rose well above their record in July - an increase of 12%.


The significant monthly rise in demand for lettings is said to have resulted from Referendum uncertainty and the shock of higher stamp duty rates; with Knight Frank indicating that both tenants and landlords elected to wait on property purchases until further clarity emerges.


When analysing data in the three months to August, the firm found a year-on-year increase of 15.7% for new tenancy agreements; whilst the number of prospective tenants and viewings also rose throughout the same period, rising 5.5% and 21.7% respectably.


In parallel, the firm witnessed an increase in supply with the number of new properties coming onto the market in the three months to August rising 43.8% year-on-year – the second highest in Knight Frank’s records.


With more properties added to the London’s prime central market, rental values have slightly decreased by 4.7% in the year to September. However, supply and demand is said to be less balanced across some price bands and markets, with lower-priced assets performing more strongly than others.


In other property news, Halifax’s most recent House Price Index shows property prices across the UK rose by 0.1% in September.

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