Hull property firm says Brexit uncertainty is fuelling the city's rental sector

By Hull Daily Mail | Posted: 12 Dec 2016

A Hull property firm says economic uncertainty after the Brexit vote has stimulated the city's rental market.

While many firms have pointed to the negative impact such uncertainty has had among their sector, Garness Jones claims it has seen demand for rental properties in the city to soar – particularly in the city centre and west Hull.

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.

"Tenant demand is that high, it's now outstripping supply in some areas of the city.

"Of the hundreds of properties we manage, we currently only have eight available for rent."

The news could offer welcome relief to local landlords, who were hit earlier this year with an increase in stamp duty on buy-to-let purchases, and who will see tax relief changes implemented in 2017.

Despite these factors, investors continue to recognise the opportunities Hull has to offer, with the upcoming City of Culture giving Hull an added attraction.

Ms Reading said: "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."

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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 per cent stamp duty on properties over £40,000.

Ms Reading said: "At the start of the year, we saw landlords rush to secure new properties before the new stamp duty thresholds were introduced, and 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.

"Hull is probably one of the last areas in the country where you can find a buy to let property for under £40,000."

Ms Reading's findings echo those of Riverside Property, which is based in the city's Fruit Market.

Debra Rason, business development manager at Riverside Property, said the upcoming City of Culture year has in particular prompted a surge in demand.

She said: "We have seen an increase since the announcement – a lot of people are aware of the opportunities that the City of Culture can create.

"It has brought a lot of investors into the area because it has put Hull on the map a bit more.

"Properties are reasonably priced compared with the rest of the country, and because of the extra workers coming in for projects such as the Siemens factory, it is a fantastic opportunity for buy-to-let investors."

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