Member Article

Brexit sees London landlords in posh central postcodes turn to letting

The number of available rental properties in upmarket central London postcodes has skyrocketed in the last three months as landlords look to hold on to their properties following Brexit.

According to Lonres figures, the number of properties to let in prime central London, which includes Westminster, Kensington, Hammersmith, Fulham and Camden, has increased nearly threefold, rising from 8,834 to 24,761.

A combination of hard Brexit worries, global economic uncertainty and higher taxation are all being blamed for landlords opting to hold on to their properties until the market becomes more conducive to selling.

One offshoot of the increase in available rental properties, according to property firm London Central Portfolio, has been an increase in rental values for newly refurbished properties, which have seen a 3.6% uptick over anticipated rents.

Naomi Heaton, who is Chief Executive at LCP, said that, with the glut of new properties on the market, now would be the time for prospective renters to secure deals before landlords look to recoup increased costs.

She commented: “Across the rest of the year and into 2017, landlords may seek to recoup the increased entry and running costs due to the Additional Rate Stamp Duty and the forthcoming reduction in mortgage interest relief.

“This may lead to a further hardening of rents across the board. For tenants with the flexibility to move, now may be the optimum time to secure the best deals before Landlords act to counter the tax headwinds.”

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