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Spring Rental Market Comment 2019 by Fiona Guthrie

By Fiona Guthrie  //  Mon 18th March 2019
We are perplexed by the uncertainty surrounding the Brexit negotiations which seem never ending. However the uncertainty has an upside for the rental market as anyone unsure of what lies ahead may wish to rent in the interim period.



It is Spring time, such a wonderful time of year with a feeling of optimism. Summer is generally a very busy time indeed for the rental market and the build up of these enquiries usually starts around Easter.

This year may be a little different. We are perplexed by the uncertainty surrounding the Brexit negotiations which seem never ending. However the uncertainty has an upside for the rental market as anyone unsure of what lies ahead may wish to rent in the interim period. This will boost the market which is currently suffering from an inevitable reduction in the number of new corporate tenants being transferred to London from overseas.

Stock levels are a little disappointing with a marked reduction in the number of new properties. Sadly the less stable sales market with softening property values, combined with changes to stamp duty and the reduced allowances permitted from rental income, make being a landlord less attractive. However, most of our landlords are long term investors and they have seen many changes to the market over the years. Their belief is that well located property in the centre of London is a solid asset, the values may dip for short periods but will recover and increase in the long term. This shortage of new property available to rent has caused rents to increase slightly in some sectors.

Despite the ongoing uncertainty while negotiations continue with Europe, we predict that the enquiry levels will pick up as we head towards summer. Stability will bring back confidence and we are looking forward to the future and to a time when Brexit is a thing of the past.

Fiona Guthrie
Lettings Director
Plaza Estates

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