One of the major trends we are seeing following the referendum is increasing rental demand, which is driving growth in the lettings market alongside that in the sales market. Although capital growth remains healthy, we are especially seeing rental yields are on the rise.
As yours truly mentioned in ‘Autumn Statement Falls Short’, the Government continues to fall short of the housing commitments the industry keeps on calling for. However, the Housing Crisis is not so much of a catastrophe for private landlords who continue to cash in on the oldest of business principles: short supply means big demand and a hike in prices.Loathe as I am to bring everything back to Brexit, acclaim that we have beaten the downturn needs to be tempered with the warning that the investment comes as a result of a depressed pound. Rent increases are no more concrete-a-sign of a blooming economy as foreign investors buy-to-let and squeeze the housing supply even further.On a brighter note, foreign investment does indicate that the world at large has accepted Brexit to be the new normal and have resumed business. I’m not sure anybody can predict the economic trajectory of the next couple of years but continued trade with Britain is certainly a positive note to start on.
