When the surprise Brexit result was announced last June, there were those who predicted it would be a nightmare decision for the UK property market to absorb. Experts claimed that house prices and rents would plummet, and that investors would be left holding stock that was making far less of a profit than they have become accustomed to.
However, one year on from the British public making the decision to leave the European Union, it would appear that the result has not had the catastrophic implications for property that had been predicted. While the market has slowed amidst the uncertainty that is currently in place over the negotiations for Brexit, the fact that prices are still headed upwards is a strong indicator that the market is still performing well.
According to the most recent study released by the Office for National Statistics (ONS), as of June this year, the average price of property has remained largely static for a full quarter, with none of the last three months having experienced growing rental prices.
However, while this would be a concern for landlords, the fact is that overall, since Brexit, prices have still been rising. Since the votes were counted last June, the ONS data shows, prices have risen by 1.8 per cent. It may not be the large rises we’ve been used to seeing over the last few years, but the fact there has been a rise at all is a reason to be positive about the future of the market. Click here for the full history of the UK’s buy-to-let market…
The largest rent rises over the past 12 months have come in England, where reports show a growth year on year of some 1.9 per cent. This was followed by Wales, where rents were up by 1.1 per cent, and Scotland, which experienced rises of just 0.2 per cent.
While none of these are spectacular annual climbs, the fact that they are rising even at a time when the market is being hit by such uncertainty can only be seen as a real positive for the sector and, with more than 12 million people living in 5.5 million rented properties, demand for rental property is set to continue.