Along with uncertainty in the housing market, landlords are getting nervous as rents fall ahead of Britain’s departure from the EU.
According to the Association of Residential Letting Agents (Arla), 1 in 9 agents have reported an immediate decrease in rents after last month’s EU referendum result, with around half claiming their landlords are nervous ahead of Brexit.
David Cox, Arla MD, has said that the rental market has been stable thus far, however there were warnings that there could be fluctuations over the coming months. If institutional investors decide to abandon the rental market, we could see rents increase as landlords and agents look to make the most of supply.
The Taxpayer’s Alliance has also called for stamp duty on homes to be reduced by 50%, with a view to being abolished completely. The 3% stamp duty surcharge on buy-to-let properties is being attributed to potential rising rent costs as investors pass on these costs to tenants.
For more information on the buy-to-let market, read The Guardian article here.