THE UK referendum decision to withdraw from the European Union will have a big impact on many aspects of British life when (if?) and in whatever format it happens – but what might be the potential impact of Brexit on Cotswold landlords and tenants?

With still no apparent cohesive plan as to how the UK might ‘take back control’ the only thing we know for certain is that Brexit has brought a great deal of uncertainty.

Generally we have found that landlord and investor thinking is split into two camps.

There are those that worry about Brexit and are perhaps seeking to reduce their exposure to UK property as a result.

There are others however, that see this as a very good opportunity.

It has been suggested that with less migration from Europe, and elsewhere, there will be less demand on the UK housing market and therefore fewer opportunities within the rental sector.

Conversely, there are an increasing number of people who are now choosing to rent because it gives them greater flexibility and allows them to move if necessary without the overwhelming time delays or costs of selling a property - especially if their employers are relocating.

Renting also protects them against the worst case scenario as outlined recently by Mark Carney, the Governor of the Bank of England, of rising interest rates coinciding with a fall in house prices.

In addition to this uncertainty, both the current Government and opposition parties have sent out a clear message that they wish to see a slowdown in the private buy-to-let market, despite the national housing shortage and a lack of affordable housing.

It appears the Government’s strategy is working.

According to research from the Association of Residential Letting Agents (ARLA) a significant number of individual landlords and investors are quitting the rental market, thanks not least to the increasing regulation and financial penalties imposed on landlords such as the higher rates of stamp duty and capital gains tax as well as the phasing out of mortgage tax relief.

Also affecting the supply side of the equation we have witnessed within our own rental portfolio where good, reliable tenants are often staying beyond the normal and average length of a ‘standard’ tenancy which is excellent news for landlords seeking to reduce void periods.

At such a time of uncertainty the pressure on individuals and households to purchase a property is reducing.

The overall result of this in Cirencester and the Cotswolds is a reduction in supply of available housing for letting which in turn is increasing pressure on rents.

Ultimately then, it is not Brexit that poses the biggest risk to the Cotswold rental market, but Government intervention - whether through their housebuilding policies or excessive taxation and regulation of landlords.

In conclusion we believe that the Cotswolds rental market will remain well supported and it is reasonably clear that more, not less, people are going to be renting going forward.

Employing the services of an established and experienced local lettings agent such as Moore Allen & Innocent cannot only help landlords to navigate the minefield of existing and proposed legislation but can also help to identify and secure the most suitable tenant - and quickly, thereby reducing void periods and increasing overall returns.

A local letting agent, experienced in the current trends and demands of tenants, can advise clients on the best way to present a house to attract and secure a suitable tenant, while providing exposure to the whole market whether via online, high street presence, word of mouth, newspapers and magazines.

For further information and a no obligation discussion on letting or managing your property, contact a member of the team at Moore Allen & Innocent at lettings@mooreallen.co.uk.

Alternatively call or drop in to the offices in Cirencester (01285 648 118) Lechlade (01367 253 138) or Tetbury (01666 718 895).

Paul Oughton

Partner - Residential Lettings & Agriculture for & on behalf of Moore Allen & Innocent