9th
Nov 2016
Good news is that the UK's rents are going to increase quite drastically over the next half a decade because of the surge of private renters, which apparently is down to Brexit, claims a major UK estate agency chain.
From their research the chain estimates that over the next five years rents will rocket by 19%, whereas in the same period up to 2021 will see an increase of home ownership of 13%.
The research forecasts that on average the capital's rents will increase by 24.5% due to the much higher property prices.
Increasing numbers of potential home buyers will face having to rent as the housing crisis determines the tougher conditions of the housing market, and many prospective landlords will be deterred by the recent tax changes causing decreasing demand for new builds.
The chain predicts home price rises will be minimal, if at all, over the next two Brexit 'negotiation' years as many may be put off by the uncertainty.
Recent research from a major lender into UK home property prices claiming that house process had stopped rising in October (the end of a fifteen month run) due to Brexit and that there was not any change from September.
The estate agent chain forecast that UK house prices will on average remain the same in 2017 and will increase by 2% in 2018, by 5.5% in 2019, by 3% in 2020 and only by 2% in 2021.
The head of residential research of the agent's Lucian Cook, said: “Brexit has forced the market to change gear and created uncertainty.
“The period of negotiation with the EU is likely to be a rollercoaster of confidence.
“Buyer sentiment across all sectors of the market is likely to be fragile during the period of negotiations to leave the EU.”
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