The latest figures from the Landbay Rental Index reveals that London landlords are potentially over £1,800 out of pocket since the June 2016 vote to leave the EU.
Citing figures from the analysis (which were calculated using a conservative projection) PropertyReporter says that London’s rental growth is now 2.84% lower than expected back in June 2016 - but this could be as high as 4.15%.
The latter estimate would leave the average landlord in the capital with a rent shortfall of £1,806 due to subdued rental prices - or £1,217 for the mid-point.
The data also shows that:
- in London, the average annual rental growth dropped from 1.26% in June 2016 to a low of -0.33% June 2017, with a sluggish recovery in February 2018 (0.05%) up to 0.58% in December 2018;
- the rest of the UK has largely stayed in line with expectations for growth, with the drop in rental price growth being confined to London;
- average UK property rents increased by 0.96% in the year to December 2018. The overall picture continues to be dragged down by slower growth in London (0.58%) on otherwise robust rental growth in the rest of the UK (1.16%).
A spokesman from Landbay said: “Many landlords will have been looking to offset the Government’s punitive tax regime by raising rents, however the uncertainty surrounding Brexit has forced the vast majority to forfeit this to maintain a steady income. Employment and immigration are the two main concerns for the housing market when considering Brexit. While nobody is any clearer about Britain’s future relationship with the EU, it’s clear the impact of a no-deal Brexit would be significant for the UK economy and property market”.