The House Rental Market Post Brexit In The West Midlands
Brexit the complete unknown as no one has ever be there but that doesn’t stop the experts. There are so many claims of what will and what will not happen if we stay or if we leave. Only one thing is certain life has to go on no matter the outcome. With a focus on the housing market post Brexit a number of landlords were surveyed to see what plans they had (Survey Data used from Alan Boswell Group)
So the focus is will property investment in Birmingham still be a profitable venture and a worth while business investment. No one know’s how the market will really be effected until it happens, but plans are taking place in the background of the housing market.
Brexit & The Market Effect Survey
West Midland Landlords Survey Data Post Brexit (2019)
42.8% of West Midlands landlords have thought about or are planning to think about investments outside of property, because of Brexit
14.3% of West Midlands landlords think Brexit will positively impact private rental market
80.5% of West Midlands landlords are planing on keeping rental rates the same, despite Brexit
However, 14.6% of West Midlands landlords are planning on raising rental rates due to Brexit, over twice the national average of 6%
28.6% of West Midlands landlords have considered selling their properties in the near future because of Brexit worries
42.9% of West Midlands landlords are worried that Brexit may mean tenants cannot pay their rent
Over the years property has always been a good long term investment. Of course there were some losers in 2007/8 after the crest of the property boom collapsed after growing rapidly the previous 10 years. GS Property has the local knowledge to hand where all the potential good investments are post Brexit in the West Midlands areas.
source housing data
The Brexit Outlook
It seems there is not much positivity within rental market post Brexit. This is only natural as the media is not covering anything postive about Brexit at all. In fact if you googled “Positive Brexit news ” the only postive story on page 1 is from the New York Times about the future of trade deals with the USA. Therefore the results on any survey post Brexit will come as no surprise to anyone.
Postive / Negative Rankings By County
Devon bucking the trend and actually having a postive outlook post Brexit in the private rental market. This could be due to the fact that in 2014 Devon was quoted as being the fastest growing county within the UK. At that time there was over 12,000 second homes within the county making it the largest holiday homes county in the UK. Perhaps this is why they feel postive as the bulk of the private rentals is short term holidays and not residential.
The Most Negative Rental Property Areas Post Brexit 2019
It’s not surprising that Greater London is a little worried about post Brexit. London is the 2nd most expensive city in the world just behind Hong Kong. The average property buying price in London is over £21,000, with a potential of rental income of £4,700 a month. This gives them a gross rental yield of 2.76% so there are large sums of money to be made or lost within the London house rental market.
Rental Rates Post Brexit
For a staggering 91% life continues as normal, its just another day after Brexit. A small percentage see it as an opportunity to increase their profits post Brexit in the house rental market.
Re-Financing Post Brexit
11% of landlords have already re-financed just in case post Brexit things do change and it may be a wise choice. The 11% that are looking to gain a longer term mortgages after Brexit may be on for a shock. As some landlords are looking to increase their rental rates post Brexit it would be no surprise if the banks also increased their lending rates as well.