Letting agents: 'The rental market has responded to Brexit in a calm fashion'

Landlords are calm about Brexit, according to a post-referendum survey by the Association of Residential Letting Agents (Arla).

Arla said just 12% of its members reported an immediate fall in rents after the 23 June vote for the UK to leave the European Union (EU), while 77% reported no change to rental costs. The survey, conducted 8-18 July, also found 67% of members reporting no change in supply and 64% reporting no change in demand from prospective tenants.

"The rental market has responded to Brexit in a calm fashion, with no immediate fallout amid extreme political and economic uncertainty," said David Cox, managing director of Arla. "Although we've seen some hesitation from landlords this is relatively mild and it's important they do not act in haste. Any inevitable longer-term changes will then be taken on board with greater ease."

Landlords are the target of a number of tax increases by the Treasury, such as higher stamp duty and the cutting of relief for rental income, which wants to cool buy-to-let demand in the housing market and increase home ownership.

The HomeLet Rental Index said the average monthly rent for the UK hit £773 in the three months to June, up 3.5% over the year. In London, the average rent hit £1,575, highest of all regions, after increasing 3.9% over the year. In the north-east, where rents are lowest, the average fell 3.6% to £540.

Question marks hang over the future of the housing market after the vote for Brexit. Britain has yet to invoke Article 50 of the Lisbon Treaty, which formally kickstarts the two-year process of leaving the EU. Britain's future relationship with the single market in particular is unclear.

The property market will likely feel the full force of any Brexit-triggered economic slowdown, which could hurt demand. A Treasury analysis of Brexit released before the referendum suggested that a severe economic shock would send house prices crashing by as much as 18% on average.