Foxtons says Brexit putting renters off longer-term tenancies

Foxtons says Brexit putting renters off longer-term tenancies


Todays other news


The number of people committing to tenancies for two years or more is declining according to new data released by Foxtons.

 

In 2016 the average tenancy length was only 13 months increased to 23 months upon renewal says the agency. 

 

Those staying two years or more accounted for only 38 per cent of tenants in the first quarter of this year, down from 44 per cent in the final three months of 2016. 

 

“This demonstrates a degree of caution from tenants when it comes to committing to a lengthy lettings contract and we don’t expect this dynamic to change in the near term, particularly given the ongoing uncertainty around Brexit” explains Ed Phillips, managing director of the agency’s lettings operations.

 

“So while the government’s proposal [for longer tenancies, contained in the Housing White Paper] might have tenants’ best interests at heart, it’s clear that the exibility afforded by the status quo remains an attractive proposition, and this will not be a silver bullet in helping generation rent” he adds.

 

The number of properties listed to rent with Foxtons increased for the third quarter in a row in the first three months of 2017, although this was offset by an increase in demand from renters. 

 

The proportion of renters from Western Europe in Q1 2017 remained largely the same as at the end of 2016. There has been a small increase in domestic renters in the first quarter to comprise 41 per cent of all renters, rising from 39 per cent in Q4 2016.

 

The increased supply has continued to put downward pressure on rental prices, the agency says, although there are indications that this supply/demand balance is beginning to align. 

 

The largest flats in central areas continue to be impacted most by falls in rents. Meanwhile, larger flats in outer London have performed more strongly, with significantly smaller falls in rents recorded over the past year. Studios in Zone 2 are the only property type to have seen an increase in rental prices in the past year, Foxtons says.

 

“Although total returns across London are lower than in recent years, a return of 11.2 per cent on investment still makes residential property a very profitable and attractive asset class, outperforming many other investments” claims the agency.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
Service charges for flats rose by an average 11% in...
There are 48 units in this grade II listed block...
The successful candidate started in property back in 2018...
There's been an increase in rough sleeping in London...
The Welsh Government is backing the call for a 'compensation'...
There will be a greater emphasis on digitisation....
A consultation document is being released today....
Recommended for you
Latest Features
Two amendments are being put to the Renters Rights Bill...
David Smith Weill be answering agents' questions...
She;'s previously worked with LSL's Reeds Rains brand...
Sponsored Content
Tenants want a place they can call home—somewhere comfortable, safe,...
Letting agencies face the dual challenge of keeping both landlords...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here