We have not yet seen any signs that Brexit will, have a negative impact on the UK’s rental market. Indeed, recent figures suggest the sector has actually grown since the vote to leave the EU on 23rd June.
Rightmove has revealed rental enquiries were up by two per cent in Q2 in comparison with the same period last year, while they rose by one per cent in the two weeks after the referendum versus the same fortnight in 2015.
A period of uncertainty among homeowners, buyers, investors, landlords and developers is inevitable, but this does not mean the market will suffer or that prices will fall. All the signs so far indicate the property market is resilient and able to withstand Brexit-related pressures easier than other more volatile sectors.
House builders and developers weakened on the stock market may make it harder for the government to meet its house building targets. As a result, we would expect property prices and rents to be pushed up as the existing shortage in supply becomes even more severe.
Any fall in house prices is not likely to be dramatic as the housing shortage will prevent a sizeable drop.
With regards to legislation, withdrawal from the EU may have an impact on landlords. EU legislation currently covers the private rented sector in a number of ways, from the energy performance of buildings regulations to consumer protection from unfair trading rules, heat network regulations and a range of other matters.
Parliament will most likely pass an act confirming all existing regulations made in support of EU directives will continue as before. This would allow some time to gradually amend specific acts as it wishes.
It remains to be seen exactly what legislative changes will be made and how these will impact on landlords, but here at County we will ensure we stay up to date and act swiftly to ensure our landlords are fully compliant.