Property investment company LendInvest has published research which shows that only two of the top 20 local authority districts for rental yield voted to remain in the European Union at last month’s referendum.
The firm’s most recent quarterly research index on the UK buy to let market has tracked the trends and changes in landlord rental yields and capital gains over the last six years.
The study reveals that only Liverpool and Manchester were in the top 20 for rental yields, whereas only two of the top 20 districts for capital gains voted to leave the European Union (Barking and Dagenham and Spelthorne (Surrey)).
LendInvest CEO and co-founder, Christian Faes, explained that he found it interesting that the top rental yield districts, which are commonly found in the North East and North West, voted so comprehensively in favour of Brexit.
Faes added: “The areas that have seen the best of the recent boom times have generally enjoyed the biggest house price rises, and with that offered the greatest capital gains.
“Perhaps it is no surprise that they were sufficiently content with the status quo to vote Remain. Areas which have seen far more modest house price rises, appear to have been more disposed to voting for the change promised by Brexit.”
The LendInvest co-founder also believes that Brexit could create new opportunities for property investors, in particular those who are experienced and professional, adding that with house prices expected to soften, some potential buyers could be put off buying.
However, these people still need somewhere to live, which landlords can use to their advantage and furthermore, if house prices do fall (as is expected), then an investment in property will be an even more enticing prospect.
Meanwhile, London listed property firm, Capital & Counties, has reduced the value of its development at Earls Court by 14%, which is another indication that Central London luxury property values are falling in the wake of the Brexit vote.