Brexit : 45% of Landlords in London to Review Portfolio Size
Despite premium real-estate available on the market rising by 24% and surpassing demand from prospective tenants it has been revealed that 45% of landlords with property in and around London are reviewing the size of their portfolios following rental prices for high end houses in Central London dropping by over 5% since the country voted to part ways with the EU.
An increasing number of property deals are stalling as a result of the referendum vote, with landlords discouraged by the unpredictable future of the housing market. Uncertainty surrounding Britain’s impending Brexit deal in addition to recent limitations in the buy-to-let program have lead countless landlords to reassess current portfolios and increase rent for their tenants.
Likewise, increases in stamp duty and other property taxes have created a surge in unoccupied homes and further discouragement.
Independent research firm BDRC has discovered that, 38% property owners UK wide, have had to re-evaluated the size of their portfolios to make sure they are able to endure mounting expenses, with an additional 7% telling researchers that they have already sold their rental properties in efforts to reduce the size of their portfolios.
The research firm has also learned that 30% of the landlords surveyed have bumped up rent, and whilst these changes have touched renters across the country they have particularly affected those in the East Midlands due to the region's popularity among professionals who wish to be close to the capital but require more living space than is available in London. Despite its appeal it still has more uncertain landlords than any other region.
According to London-based real estate consultancy firm Knight Frank, the referendum result has also discouraged organisations from transferring staff to the city which further reduces the need for privately and commercially leased buildings in London
All in all, 75% of landlords indicated that they are unsure what a future outside of the European Union will mean for them and their properties.
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