As a result of uncertainty after the Brexit vote, we’ve found that the Hull rental market is growing at a fast pace, with demand for rental properties in the city centre and west Hull particularly high.
Paula Reading, Garness Jones’ Residential Manager, said:
“After the Brexit vote, people are understandably being more cautious about purchasing their own home, and are turning to renting as a safer option. In fact, tenant demand is that high, it’s outstripping supply in some areas of the city. Of the hundreds of properties we manage, we currently only have eight available for rent!”
This news is welcomed by local landlords, who were hit earlier this year with an increase in stamp duty on buy-to-let purchases and will see tax relief changes implemented in 2017. Despite these factors, landlords are recognising the opportunities Hull has to offer and are still investing in the area.
Paula continues: “With the City of Culture year just around the corner and a high demand for rental properties, Hull is more attractive than ever to investors. There’s a real buzz surrounding investment properties in the city - especially with areas such as Humber Street nearing completion and attracting out of town interest.”
In 2015, the then Chancellor of the Exchequer, George Osborne, announced in his summer budget that Landlords would no longer be able to claim tax relief on their mortgage payments from 2017. In his Autumn statement, he also announced Landlords buying to let, or anyone purchasing a second home, would have to pay 3% stamp duty on properties over £40,000.
Paula concludes: “At the start of the year, we saw landlords rush to secure new properties before the new stamp duty thresholds were introduced. The market slowed down slightly following this. However, over the past few months, we’ve seen increased interest in investment properties in Hull, where landlords know they can purchase reasonably priced buy-to-lets that offer a very good yield. In fact, Hull is probably one of the last areas in the country where you can find a buy to let property for under £40,000!”