Richard Bryce of Aston Chase and Tim Hassell of Draker Lettings look at the effect of Brexit on the London super-prime rentals market
“As a result of Britain voting to leave the EU we are expecting an increase in number of prospective tenants looking to rent property as opposed to making a purchase.” says Richard Bryce. “ The high end residential rentals market has both a domestic and international tenant demographic and, although it remains to be seen it is the case that international demand may lessen slightly, positively we are expecting the domestic applicant base to increase to a level that would negate this possible overseas reduction.
It is fair to say this is all too soon for us to make a fully informed opinion as to how the high end lettings market will be affected, although the immediate repercussions of the referendum result have seen us value several larger homes for rental who’s owners had not previously considered letting at all and have been and remain keen to find a purchaser.
It is possible that with the end of the traditionally busier summer season not too far away we may have an over-supply of the property for a seasonally expected decreasing number of applicants, and for those applicants who have until recently been looking to make a purchase they will potentially have a significantly wider choice of property available to them to rent than they would have perhaps expected.
The super prime rental market however is not as seasonal and we would expect very high quality homes such as 100 Clifton Hill (details and external image attached) to remain to be highly desirable and although this market will not be left entirely unaffected by the impact of Brexit it will arguably not have a significant impact as despite the general economic uncertainty London remains an exciting and highly desirable city.”
Tim Hassell observes that “with post Brexit blues casting long shadow of doubt over the high end sales market, many of those who would have bought will now be looking to rent. At Draker Lettings, we are seeing that would be purchasers are increasingly taking a break to see how things will settle over the longer term. There has been an increase of activity with rentals over £2,000 per week, mostly from independently wealthy individuals. However, there is still a good deal of property on the market at this level.”