Business

Private rentals in border areas to feel greatest impact from Brexit

Research by RSM found that Brexit will have the greatest impact on private rentals in border areas
Ryan McAleer

THE private rental sector is the most likely area of the housing market to feel the impact of Brexit, a new report suggests.

Accounting firm RSM, carried out the research on behalf of the Northern Ireland Housing Executive.

It found that rentals in border region will feel the greatest impact.

The RSM report examined the drivers of the housing market; migration and commuting patterns on both sides of the border; and the impact on migrants currently living in the north.

The evidence found the housing market in Northern Ireland currently in a good state of health. RSM said impacts on demand resulting from changes to migration are likely to be limited, though the housebuilding industry may see a bigger hit resulting from reduced demand and problems with labour and materials.

The report concluded that the private rented sector was the tenure most likely to be affected by Brexit.

It said the impact was likely to be felt due to the higher proportion of migrant workers. It also pointed to the fact that the job and housing markets of many border areas are linked to those in the Republic.

Anna Clarke, associate director at RSM's economic consulting, said: “This analysis showed that most economically active migrants in Northern Ireland come from EU countries. Economic turmoil that reduces the value of the pound relative to the Euro is therefore likely to encourage migrant workers to move to a different EU country where wages are higher or to return to their country of origin.”

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