Private tenants need security in the face of the Brexit, insists lobby group Generation Rent.
The tenant group has spoken out after the country learned of the British public’s vote to leave the EU on Friday.
With a majority of 51.9%, the UK has decided that leaving the EU will make the country stronger.
Many organisations have spoken out since the outcome was announced on Friday morning, from property portals to finance bodies.
The National Association of Estate Agents and the Association of Residential Letting Agents claims that a period of uncertainty will now set in for the property market, particularly for homeowners and landlords.
The Bank of England has also issued a statement on what will happen to the UK economy now that we will no longer be a part of the EU.
Yesterday, we published a guide on how the Brexit will affect your personal finances: https://www.justlandlords.co.uk/news/brexit-will-affect-finances/
Commenting on the UK’s decision to leave the EU, the Policy Manager at Generation Rent, Dan Wilson Craw, says: “The decision to leave the EU plunges us into a period of economic uncertainty, and the Government must now give everyone some security in their homes. For private renters, that means protection from unexpected hikes in their rent and protection from eviction if their landlord panics and sells up. Recent first time buyers might also find themselves in a precarious position if interest rates rise.
“Whatever happens to house prices in the short-term, we still have a chronic shortage of homes, and our elected leaders need to shore up new supply. Any fall in property values demands a strategic response by local authorities to buy up homes and land, and start providing homes for people on low incomes.”
Indeed, it is believed that mortgage costs could increase if the Bank of England decides to raise interest rates. Landlords may then put their rent prices up in order to recoup additional costs.
If you are worried about your tenants’ finances, remember that you can protect your income with Rent Guarantee Insurance, which ensures you still get paid if your tenants fall into rent arrears.
Whatever the effects of the vote, always remember to protect your investment!