Rent price growth in London is predicted to be least 2.84% lower than predicted back in June 2016, and could be as high as 4.15%, according to new figures.
Going by the estimate, landlords could lose as much as £1,806 due to the decline in rent price inflation, Landbay reports.
The capital’s property market, which has arguably suffered most from the uncertainty surrounding the UK’s withdrawal from the EU, saw average rent price growth drop from 1.26% in June 2016 to a low of -0.33% in June 2017.
The market started to recover in February 2018 (+0.05%), rising to 0.58% in December last year, but still remains sluggish.
The rest of the UK has largely stayed in line with growth expectations. The average UK rent price rose by 0.96% in the year to December, weighed down by slower inflation in London. Taking the capital out of the figures, growth across the country was 1.16%.
Rent prices in Wales (1.57%) and Scotland (1.48%) were growing more than 55% faster than the rest of the UK. Meanwhile, growth for Northern Ireland stood at 0.75%.
East Midlands (2.19%), West Midlands (1.48%), and Yorkshire and the Humber (1.40%) continue to lead the regions, but the North East continued the trend towards falling rents, stalling at 0.01%.
John Goodall, the CEO and Founder of Landbay, says: “It’s hard to ignore the impact that the vote to leave the EU has had on the property market in London. While tenants are better off, without necessarily realising it, 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.”
He believes: “Employment and immigration are the two main concerns for the housing market when considering Brexit. While nobody is any clearer about Britain’s future relationship with the EU, it’s clear the impact of a no-deal Brexit would be significant for the UK economy and property market.”