It’s been a tumultuous couple of years for private landlords in the UK especially since the announcement of the Brexit, notably the loss in value of the pound against other currencies. This has a direct impact on the economy and possibly the amount of rent people are able to pay. The one upside to the economic situation at the moment is that people tend to buy rather than rent.
The value of the pound also has a direct affect on inflation, before the vote to leave last June inflation was at 0.5% in the year to March 2016 but this year it general living costs have increased by 2.3%. It’s important to increase rents where possible in line with inflation, so you will need to look at your tenants current tenancy agreement to see when you can increase the amount they pay. It’s important to review rents on a regular basis, if you need help with this just pop into your local Intercounty branch.
It’s difficult to know at this stage whether tenant demand will rise or fall, if we look purely at immigration and the fact that the Brexit might have an impact on the amount of foreign workers coming into the country which could directly effect the amount of people looking to rent. However it’s also important to take into consideration the growing demand of people who have to rent due to high property prices, now coined as ‘generation renters’, those people who cannot afford to save up a deposit and do not earn enough money to pay for a mortgage. According to Halifax the average house buyer needs to save up nearly £33,000, which increases to £100,000 if you buy in London.1
If you are a landlord or are considering a BTL property why not pop into your local branch of Intercounty or call our team 01279 655243.