The economic effects of Brexit and the election of Donald Trump remain hard to predict. Yet, in addition to this political uncertainty, the UK’s private rental sector has witnessed a number of changes that will take some time to play out.
Martin Totty, the chief executive of Homelet, said: “It is difficult to think of a period when there have been so many external interventions in the private rental sector as yet seen during 2016; the impact of many of the changes are yet to be worked through and it’s unclear yet who will emerge as the winners and the losers.”
On 12 December, the think tank Civitas released figures showing that London faces a shortfall of more than 625,000 homes by 2039. They claim that only around half of the required number is being built.
As private landlords feel the bite of recent changes, it is likely that some parts of the UK will begin to see a fall in the number of rental properties available. Longer term, it is possible that this will lead to rising rents.
Rental Market Changes introduced during 2016: At a glance