David Dirx (Lettings Manager of Drewery Property Consultants) gives an update on the local letting market:
We hear plenty about how the sales market might react following Brexit, but what about lettings? If there is any uncertainty about the sales market will people rent for longer? Could there be an influx of people from the EU prior to our exit looking to rent in the local areas?
The likelihood is that whatever happens there will always be a high demand for rental properties in Sidcup and Bexley. Certainly we have not seen the slightest drop in enquiries for property to rent since Brexit and, if anything, I would say that we have seen a slight increase in the number of people contacting us about rental property.
We also expect that the majority of our landlords will keep hold of their investment properties. Most landlords are now in it for the long haul, considering property as a safe place to invest their money, expecting, as they have in the past, to see capital growth and regular income for their property portfolios.
There is also talk following Brexit that rents will escalate out of control. This, we believe, will not happen. Rents normally always rise slowly at a rate that tenants can afford. We often explain to landlords that a tenant wishing to rent a property has to pass affordability checks where their income is looked at against the rent. If rents were to raise too quickly against the income of tenants we would have no tenants who would pass these checks or be considered financially suitable.
According the latest Homelet rental index for June the first half of 2016 has seen a slower rate of rental growth compared to the same period last year. Average rental values have increased in ten out of twelve regions in the UK, compared to the same period last year. Rents in Greater London are up by +3.9% year on year - a drop on last month’s annual growth rate (6.2%). Bexley average rent 12 months to June stands at £1030 which is an annual variance of +5.3%.
For more information about the local rental market or investment opportunities within the area contact our friendly staff on 020 8269 6699 or email me direct