LONDON (Reuters) – Rents for residential properties in Britain fell in quarterly phrases for the primary time since 2012 within the January-March interval of this yr, intensifying a slowdown which started shortly after the 2016 Brexit vote, a report confirmed on Thursday.
Average rents had been zero.5 p.c decrease than within the final three months of 2017, in response to the Deposit Protection Service which runs a deposit safety scheme for landlords and tenants.
“Although the first quarter of this year saw the first negative rent growth in some time, the current slowdown began in mid-2016 and could well be linked to the EU referendum result,” Julian Foster, DPS managing director, mentioned.
“General economic uncertainty is undoubtedly an influence and seems to have hit demand for rented property in particular as fewer people choose to move – and fewer landlords seek to increase rent.”
An analogous fall within the second quarter would symbolize the primary lower in rents in annual phrases since 2009, DPS mentioned.
Rents in London fell by 1.four p.c within the first quarter and the largest fall was registered in Northern Ireland the place rents had been down three.1 p.c.
A measure of personal rents compiled by the Office for National Statistics, Britain’s official statistics company, has proven development in personal rents within the 12 months to March stood at 1.1 p.c, lower than half the speed earlier than the Brexit vote.
Another report printed on Thursday confirmed two thirds of corporations surveyed in London felt excessive housing prices and a poor availability of lodging had been making it more durable to recruit junior workers.
“The potent combination of lack of supply and high prices means businesses themselves are being priced out of the market, as they can’t afford to recruit and retain their workers,” Eddie Curzon, London director of the Confederation of British Industry, which commissioned the survey, mentioned.
A 3rd report on Thursday confirmed falling demand for retail properties in Britain as rising on-line gross sales modified conventional procuring habits. By distinction, demand for industrial area rose, reflecting the necessity for logistics centres for e-commerce, the report by the Royal Institution of Chartered Surveyors confirmed.
Reporing by William Schomberg, modifying by David Milliken