The imbalance of supply and demand is a decisive factor for pricing in the real estate market

In anticipation of the historic event – the referendum on the British exit from the European Union, various agencies are trying to predict how the output can affect the market of real estate of great Britain.

Approximately 65% of real estate agents believes that the level of supply in the rental market will remain the same in the case of a Brexit, and only 22% believe that the market will fall, as international investors will leave the market.

The study also shows that 31% of the interviewed representatives of the market consider that demand for rentals will fall, and 55% believe that demand will remain at the same level.

The mood of agents in the market the London property not as confident, 43% of the agents believes that the number of potential tenants 1 property greatly reduced. While 19% of agents believes that the growing pressure on rents will be the result of a British exit from the EU, the majority still believes that the rent will not change.

First results of the introduction of increased Stamp duty of 3% and its impact on the rental market of real estate of great Britain. Since the new rates has been more than two months and 37% of agents said the drop in supply on the rental market. Much sadder figure in Wales, where 80% of agents said the decrease in the number of new objects for lease in may. In the East Midlands and Yorkshire about 50% of agents said the decrease in supply.

Looking ahead, it should be noted that supplies will fall further under the influence of the reduction of tax benefits for the sector a “buy to let”. The number of new objects relative to 2015 decreases every month. The demand has decreased very slightly. Only 1 potential tenant in the office was less in may than in April.

Regardless of the outcome of the political debate, the main problem remains the government’s large-scale construction of new homes, which will allow to solve the problem of shortage of housing and reduce the growth of prices in the property market in the UK as in the sector of sale and in the rental sector.

® Alice Morgan. 22.06.2016 G.

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