Tenants in London are potentially £1,806 better off since the vote to leave the EU in June 2016, according to Landbay.
Using a conservative projection, rental growth in the capital is now between 2.84 per cent and 4.15 per cent lower than expected in June 2016. The higher estimate would leave renters in London with an extra £1,806 due to subdued rental prices, or £1,217 for the mid-point.
The firm reports rental growth in London is almost 3 per cent lower than the projected rate of growth since the EU referendum.
However, annual rates in Scotland and Wales have seen a continued growth, with the former up 1.48 per cent and the latter, 1.57 per cent.
The uncertainty in the property market has been largely contained to the capital, with the growth in London recorded at 0.58 per cent, while the national average is 0.96 per cen, in the year to December.
London’s property market saw the average annual rental growth drop from 1.26 per cent in June 2016 to a low of negative 0.33 per cent in June 2017. However, the market saw a slight recovery in February 2018, increasing by 0.05 per cent.
Landbay report the rest of the UK has followed growth expectations, with the drop in rental price growth confined to London.
On a regional level, rental growth in the East Midlands is at 2.19 per cent, with the West Midlands at 1.48 per cent and Yorkshire and Humberside third at 1.40 per cent.
Landbay founder and chief executive John Goodall says: “It’s hard to ignore the impact that the vote to leave the EU has had on property market in London. While tenants are better off, uncertainty in the market has caused a conundrum for landlords.
“Many landlords will have been looking to offset the Government’s punitive tax regime by raising rents, however the uncertainty surrounding Brexit has forced the vast majority to forfeit this to maintain a steady income.
“Employment and immigration are the two main concerns for the housing market when considering Brexit. It’s clear the impact of a no-deal Brexit would be significant for the UK economy and property market.”