Quote Ref: WS1

London rents and Brexit

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Many readers are likely to be well and truly fed up with yet more Brexit-related news, but one of the positive effects perhaps is an apparent re-balancing of rent differentials between London and the rest of the country.

A report by Property Wire on the 8th of February 2019, attributed concern about the effects of Brexit to stagnation in the growth of rental income for let property in London, but a correspondingly much higher growth rate in the rest of the UK. 

In terms of market growth, the UK regions have witnessed rental increases as high as seven times that in the capital, says Property Wire.

Since the decision on the 23rd of June 2016 to exit the European Union, rents in London have risen by an average of only 0.52%, compared to an average increase across England as a whole of 3.69%. 

There are regional variations, of course. The North East of England, for example, saw rents go up by only 0.71% since the referendum, whilst growth in the East Midlands recorded an impressive 6.28% rise, and an increase of 4.75% in the West Midlands.

When London is included in statistics for the whole of England, the average increase in rents has registered a 2.5% growth. 

Although rents remain high, says one analyst, rental market performance varies widely across the regions, even given the slowdown in average rental growth when taken across the country as a whole. As far as landlords are concerned, therefore, the choice of region in which to invest in buy to let property remains critical.