The letting agency industry is probably going to be affected by Brexit because of the high proportion of EU nationals renting properties in the UK. It is thought that 20 per cent of rental properties are being let to EU nationals.
Private Letting in the UK
Out of all the houses in the UK, around 18.8% are privately let to tenants. This market is worth around £5.914 billion, so any change to the rental industry will have strong financial consequences.
A House of Commons committee has released a report about the letting agency situation with regard to Brexit. Around three per cent of people working in property agency jobs are EU nationals. This is a smaller proportion than in many other industries.
There are no restrictions at the moment on foreign nationals owning UK property, and 3.4 per cent of all property in Britain is owned by non-UK and non-Irish owners. London has the highest proportion of non-UK buyers.
Brexit Considerations
It is the relatively high level of non-UK renters than will be affected by Brexit, as it is unclear exactly how laws might change. A block management agency such as http://www.completepropertygroup.co.uk/property-block-and-estate-management/ and similar companies will need to stay on top of changes in laws as Brexit takes effect.
London is a prime hotspot for foreign ownership. It is the most expensive area to buy, and wealthy foreigners make up a relatively high number of owners. London also has a high number of renters living in the city, as it is so expensive to buy. This means foreign owners are landlords, so Brexit could affect this relationships.
London Is Popular with Foreign Buyers
Around 9.3% of property in the City of Westminster in London is bought by off-shore companies, while 7.3% of property in Kensington and Chelsea is foreign-owned via an off-shore company. It is because of this that buying property has become known as a potentially popular way to launder money and evade taxes.
Brexit could bring about many changes in the way property is bought, sold and let. This will affect letting agencies and also the foreign investors pouring into London. It is likely that the government will release another report detailing exactly what Brexit will mean for the letting agencies as the UK’s departure from the EU draws closer and the details become clearer.
