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Uncertainty is the only certainty for landlords post-Brexit
[LONDON] British landlords are unsure or concerned about the consequences of Brexit for the private rental sector, according to research consultancy BDRC Continental.
In a post-referendum survey of landlords published on Friday, 40 per cent said they think the vote to leave the European Union will have a negative effect on the sector and a quarter said they were uncertain what the impact would be. In a separate question on how the referendum would influence their own lettings business, forty-three per cent said they expected no impact.
"Attitudes and future intentions vary widely, with an underlying current that the only certainty is that there is no certainty," said Mark Long, director at BDRC Continental. "Factors that will determine how private landlords weather the storm include their exposure to EU residents and the extent to which they have strong underlying profitability across their lettings portfolios."
Early signs suggest that Brexit may have a particularly adverse effect on the British capital. London house prices posted the biggest drop since the financial crisis, according to an index published Thursday.
Deutsche Bank AG analysts Oliver Reiff and Markus Scheufler said before the referendum that higher taxes on investment properties that took effect in April could create a shock to London's "illiquid" market.