A new study has claimed that because of uncertainty around the housing market, renters in London have saved £1,806 because rents are not growing as fast as predicted.
Renters in the Capital are potentially £2,000 better off since Britain’s vote to leave the EU.
A new study from buy-to-let mortgage market analysts Landbay has claimed that because of uncertainty around the housing market in the UK, renters in the Capital have saved £1,806 because rents are not growing as fast as predicted.
But London Assembly spokesperson for housing, Tom Copley, criticised the study and said it fails to reflect the reality of private sector renting in the Capital.
Mr Copley said: “The promise of a ‘Brexit dividend’ for renters, and in any other sense, is dubious and irresponsible.
“The key premise of this report is based on hypothetical growth projections from 2016 and fails to reflect the reality that many Londoners renting in the private sector are currently paying more than half of their monthly pay packets to landlords.
“On top of this, we have also seen a recent forecast completely contradict the findings of this report, showing that Brexit uncertainty could push rents up faster than house prices by 2023.”
The study, which says rental growth in the Capital is now nearly three per cent lower than predicted in June 2016 when Britain voted to leave the UK, said the fall in rental growth has only occurred in the capital.
Mr Copley added: “If we are to get to grips with the housing and renting crisis in the Capital, it is important that we leave conjecture to one side and instead get behind the pragmatic action being undertaken at City Hall to build record numbers of genuinely affordable homes and improve renters’ rights.”
John Goodall, CEO and founder of Landbay said: “It’s hard to ignore the impact that the vote to leave the EU has had on property market in London.
“While tenants are better off, without necessarily realising it, uncertainty in the market has caused a conundrum for landlords.
“Many landlords will have been looking to offset the government’s punitive tax regime by raising rents, however the uncertainty surrounding Brexit has forced the vast majority to forfeit this to maintain a steady income.”