London Rent Is Falling Due To Brexit

  • Posted 15 months Ago

According to new figures released by real estate agents Countrywide, the average monthly rent in Britain was £5 lower in February 2017 than the year before, at £921 a month, marking the first decrease since 2011.

Rents fell ever faster in London and were, on average, down by £63, to £1,246 a month.

"Economic and housing sentiment – both in sales and rental markets – has been affected by our vote to leave the EU, in London more than anywhere else," said Johnny Morris, research director at Countrywide, according to The Guardian. "This uncertainty causes tenants to be more cautious, meaning less likely to move and more likely to look for cheaper accommodation, e.g. sharing."

The number of homes to let in London also rose by 18% due to foreign investors buying up property prior to the rise in stamp duty. Meanwhile, the number of potential tenants fell by 3%, meaning the supply increased while the demand dropped slightly.

This is good news for millennials, as almost 50% of people aged between 25 and 34 are currently renting. According to Business Insider, in 2016 just 63% of UK homes were inhabited by their owners, the lowest level in 30 years.

Tags: london