According to Haart, there has been a sharp rise in demand from people looking to rent property amid political and economic uncertainty.
The estate agent’s latest figures show that there has been a 17.4% rise in the number of tenants entering the private rental market across England and Wales over the past 12 months.
Data from the company reveals that there has been a surge in demand for rental accommodation in London, revealing a 24.6% year on year increase.
However, there has also been a 60% fall in the volume of people investing in the buy-to-let market. Many potential landlords seem to have been put off by the uncertainty of Brexit, as well as the recent legislative changes hitting the sector, such as the 3% stamp duty charge.
Paul Sloan, OperationsDirector for Haart, explains the findings: “In uncertain times, the private rented sector can provide some certainty and security for those who need to move home, with fixed rent over a fixed term helping tenants to manage their budgets and plan their lives accordingly.
“This is reflected in the fact that we’re seeing significant increased tenant demand compared with this time last year – making buy-to-let property an attractive option for those looking for a reliable return on their investment.
“Unfortunately, this increased demand is still set against a backdrop of reduced supply. It would be good to see some active encouragement from the Government for the sector to attract new investors to enter the market. The next couple of weeks will prove interesting. We could expect a super-charged property market in 2019 if a positive Brexit deal is agreed. With a strong deal in place, confidence would fuel the market upwards, turning instructions into transactions.
“Political stability is crucial for a thriving housing market – and for this we need astable government. If a leadership bid were triggered we could risk creating further uncertainty in the market.
“In my opinion the greatest threat is continued uncertainty because of political posturing. Whilst a ‘No Deal’ scenario would potentially be quite damaging, an extended period of Brexit negotiations beyond the set date of March 2019 could prove just as detrimental.”