Residential rental market instability due to uncertainty

property-price-upRents in London have rise in many locations with the market currently dull and facing uncertainty due to the EU referendum, the latest report shows. Benham & Reeves Residential Lettings’ report explains that in first quarter of this year, uncertainty was affecting the prime central London rental market. Non nationals were awaiting the result of the referendum while UK nationals were finding better value in East London and the outer. Rents in central London were falling, much to the dissatisfaction of landlords who were also suffering from the double blow of stagnating capital growth.

Marc von Grundherr of Benham & Reeves Lettings says: “There is nothing the property market hates more than uncertainty. The referendum result could be just what the market needed, the rental market always benefits in financially unstable times as people would rather rent than commit to buying a property. Demand is still strong and since the referendum, an average of 17 applicants per property compared to 13.9 year on year.”

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