9th February 2017

A shortage of supply in both the sales and lettings residential markets in the UK presents a huge challenge for housing with sales flat and prices and rents set to continue rising, according to chartered surveyors.

UK house sales still lacked momentum in January and prices and rents increased mainly due to a shortage of available properties with the lettings sector likely to see supply tighten as buy to let investment is expected to decline.

The latest monthly report from the Royal Institution of Chartered Surveyors (RICS) reveals that new landlord instructions in the lettings market failed to improve for a fourth consecutive quarter across the UK in the first month of 2017.

Moreover, respondents predicted that this issue would worsen over the medium term and indicated that they expected landlords to decrease the size of their portfolios over the next three years.

Changes to Stamp Duty in April, alongside scheduled cuts to mortgage interest tax relief, were both seen as important factors diminishing the attractiveness of buy to let as an investment as 28% more respondents felt that landlords were likely to decrease the size of their portfolio over the next twelve months.

Over the next three years some 26% more contributors expected landlords to scale-back their portfolios. It is, however, worth noting that the sentiment survey was obtained prior to the latest housing announcements in the Government’s White Paper.

During the three months to January, tenant demand for rental properties continued to increase at the national level with the continued imbalance between supply and demand expected to squeeze rents higher. The exceptions to this pattern across the UK are to be found in London and Scotland where tenant demand is slipping back a little. Rent expectations essentially remain flat in Scotland, but are more downbeat in the capital.

Over the next five years, rental projections point to a cumulative increase of just over 25%, outpacing house price inflation over this time period and respondents anticipate prices will rise a little under 20% on the same basis.

New buyer enquiries were more or less unchanged during January, although, with only 5% of surveyors reporting an increase in demand, this is the lowest reading since August 2016. New instructions, having remained flat for the past few months, deteriorated in January and have now failed to post a positive reading in eleven consecutive months.

Indeed, the report also shows that 11% more chartered surveyors saw a fall in new instructions in January rather than a rise, leaving average stock levels on agent’s books still close to historic lows.

At the same time, sales were flat for the second month in succession with 1% more chartered surveyors seeing a fall in sales over the month. This headline reading does mask regional variation with the sales balance rising firmly in the South West while at the other end of the scale, it declined in central London.

Sales are however predicted to improve in the near term with 15% more respondents expecting a rise over the next three months nationally. What’s more the balance of respondents predicting that sales will increase over the year to come reached a one year high of a +37 net balance.

Meanwhile, 25% more respondents saw a rise in prices, rather than fall in January, as prices tick back up. Looking across the UK, the past price balance deteriorated slightly in central London for the second straight report and has now been in negative territory for 11 consecutive months.

Most other parts of the UK continue to see prices rise, with the North West returning the highest net balance for a third survey running. Prices are expected to continue to rise over both the next three and 12 months across the UK in all regions except central London.

‘The scale of the challenge Government faces as it announces its new approach to housing is clearly demonstrated in the results from our latest survey,’ said Simon Rubinsohn, RICS chief economist.

‘Not only are the headline price and rent series pointing to further increases over the course of this year, but more significantly, the medium term view of RICS professionals working up and down the country is that both house prices and rents will over the medium term continue to grow at a faster pace than wages putting even greater pressure on affordability. Whether the measures announced can ease this this trend remains to be seen,’ he added.

Julia Kollewe           Thursday 9 February 2017 00.01 GMT

Rics survey heaps further misery on Britain’s growing army of renters, who will likely have fewer properties to choose from

Landlords are expected to scale back portfolios in the next 12 months, but rental demand continues to increase. Photograph: Alicia Canter for the Guardian

UK rents are expected to rise faster than house prices over the next five years, bringing further misery to Britain’s growing army of renters, according to a survey.

The Royal Institution of Chartered Surveyors has predicted that rents will increase by just over 25% in the coming years, while property values are set to grow by less than 20%.

In the three months to January, tenant demand for rental properties continued to go up. With landlords expected to scale back their portfolios in the next 12 months, tenants will have fewer properties to choose from, which is likely to push rents higher, the survey suggests.

Rics said there was a lack of new listings coming on to the lettings market for the fourth quarter in a row and its members expect this to worsen.

The past few months have seen a number of buy-to-let investors sell up, including Britain’s biggest landlord, Fergus Wilson and his wife, Judith, who declared that the days of small buy-to-let landlords were numbered after the stamp duty increase last year and other tax changes, along with tougher mortgage rules.

The Rics survey was conducted before the release of the government’s housing white paper on Tuesday, which promised encouragement for private developers to build large-volume rental flats for tenants, and more long-term “family friendly” tenancies. Campaign group Generation Rent criticised the fact that these were limited to new purpose-built private rented homes and said renters on stagnant wages needed homes costing no more than one-third of their income.

But Jeremy Blackburn, the head of UK policy at Rics, said ministers had listened to the organisation and stressed that the fledgling build-to-rent sector needed a “turbo-boost”.

“At the same time, we need to stop punitive measures against our bedrock small landlords. The detail on the ban on letting agent fees is yet to come, and along with any overt forcing of longer tenancies, [it] could dampen investment in buy to let overall. The government must be careful about signalling both stop and go at the same time,” he said.

According to the Rics survey, a net balance of 25% of surveyors reported rising house prices in January. Property values are expected to continue their upward trend across the UK over the next 12 months, except in London, where they are expected to fall further. North-west and south-west England and northern Ireland are seeing strong growth.

Supply and demand are stagnant. Rics said the number of properties for sale across the country remained close to historic lows, while a net balance of 5% of surveyors reported an increase in demand from homebuyers, the lowest reading since last August.

Brian Murphy, the head of lending at the Mortgage Advice Bureau, said rent increases in many areas over coming months were “potentially a good outcome for landlords who are staying in the buy-to-let game, but not so great for tenants in the private rented sector”.

Arran Kerkvliet – Published on 18/01/2017

There will still be an insufficient supply of housing to meet the demand and the gap between earnings and house prices is still expected to widen, strengthening demand for rental property

n terms of the property market, 2016 will be characterised by two events, the additional 3% stamp duty increase on second homes and Britain’s decision to leave the EU. According to the Royal Institute of Chartered Surveyors (RICS) stamp duty changes have had far more of a significant impact on the property market than the referendum.

The effect of stamp duty increases on the property market

In April 2016 when the stamp duty increase took effect, property sales were 19.6% below the 5-year average for April. Some have predicted that if the increase deters buy-to-let landlords, it will limit the supply of rental properties and with demand not showing any signs of a stagnation, the only resulting outcome would be an increase in rents as landlords aim to recover their tax losses from the tenants.

The effects of Brexit on the housing market

Britain’s decision to leave the EU is expected to slow the property market, as potential buyers and investors will be holding off purchasing property until negotiations are underway and it is clearer what sort of trade deals will be put in place.  The effects of Brexit are expected to be more pronounced in London, with Knight Frank predicting a 1% fall in property prices in the capital, and 1% growth elsewhere. Prices in central London are expected to stabilise, following declines in 2016. This will partly be a consequence of the lower pound value and strong appetite for UK property from overseas investors. Transactions in the capital and some other parts of the UK are expected to fall, in places by more than 8%. London looks to lose out to cities such as Manchester and Birmingham, where property prices are rising more rapidly ahead of earnings.

Section 24 will also be phased in from April 2017 over a four-year period, affecting individual landlords. Some of the amendments include restricting the amount of Income Tax relief landlords can get on residential property. Also, individual landlords will be taxed on revenue and not profit, so finance costs will not be taken into consideration, which will result in a loss for landlords that may be passed on to tenants.

Mortgage interest tax relief will also be phased out over the next four years, and the most landlords will be able to claim for will be the basic rate of tax, which is currently 20%. At present, landlords can claim relief at the top level of tax they pay, which means that those earning over a certain threshold can apply for relief of up to 45%.

These amendments will not apply to companies, so one way landlords can get around the implications of Section 24 is by setting up and trading under a limited company. Although this will mean landlords will avoid the negative effects of Section 24, setting up a company comes with its own obstacles and charges. There are fewer mortgage options available to companies, and there are other charges associated with owning a company including annual accounting fees (typically £1000 p/a) and a flat rate tax of 20% on all profits. Therefore, setting up a company is not always a viable alternative to paying the additional charged levied upon landlords in accordance to Section 24.

An alternative is to consider investing in commercial investments, such as loan notes or co-working space. These often need to be bought outright with cash, thus bypassing the requirement for a mortgage and subsequent tax hike.

Will there be any regime changes?

There has been some disagreement over whether there will be any regime changes in the property sector. Matt Tooth of LendInvest asserted that if property transaction volumes drop, the government might have to reconsider its housing policy and become more hands-off. Ian Thomas of LendInvest has predicted that 2017 could be the year of the u-turn when it becomes apparent that the amount of tax gained from Stamp Duty has been declining since the changes were introduced. Ian predicts that lower tax revenues will also negatively affect Philip Hammond’s proposal in his Autumn 2016 Statement to invest £1.4billion for house building to create 40,000 affordable homes and £2.3 billion to build 100,000 houses in areas of high demand. It has been calculated that the decrease in sales activity on properties worth over £1 million in the second half of 2016 has cost the Exchequer nearly £500 million.

The Bank of England however, has ruled out changing Stamp Duty of second homes or mortgage tax relief that will be implemented this April. The Financial Policy Committee has pledged to review its overall strategy for setting measures to guard against risks stemming from owner-occupier and buy-to-let mortgage markets.

In short, there is a significant amount of uncertainty whether the government will continue to target small to medium sized landlords with further policies that could pose additional negative impact on the buy-to-let market.

Widespread property price decline?

Tom Sharman, head of real estate finance at NatWest, has claimed that it will be unlikely in 2017 that there will be a widespread decline in property prices in the UK. Tom stated that “high employment, tight supply and a healthy mortgage market mean a widespread decline in prices seems unlikely.”

Although it is predicted that in 2017 property price growth will slow to 3%; low-cost mortgages and a shortage of supply vs demand will continue to buoy the property market meaning that the likelihood of a “house price crash” is extremely slim. The government has recently set out plans to build one million new homes by 2020, but the housing minister has conceded that targets for December 2016 are likely to have been missed. This puts further pressure on supply and keeps momentum within the property market.

Rental prices will increase

Demand for property will continue to outstrip supply in 2017, and this will affect prices in the rental sector. Rental costs have been predicted to rise by up to 3% due to the shortage of housing, which will be welcome news to existing buy-to-let landlords. In 2016 rental growth was relatively sluggish, and even dropped in some places such as London by 0.31%, but 2017 will see an increase once again in rent prices. Demand for property will also remain steady. Despite the effect recent events may have on the property market, it will still take a generation renter on average 19 years to get onto the property market.

Predictions for 2017 and onwards

It’s widely accepted that property increases and decreases are cyclical, and that property is more of a medium-long-term investment. 2017 looks to be a time of uncertainty with regards to the property market, but temporary political uncertainties have a minimal effect on what is essential a robust market, that continuously outperforms other asset classes. The stabilisation in house price growth is expected after a period of huge growth and it is considered the natural correction of the house price market.

In fact, a leading estate agent has predicted that over five years, typical house price values will rise by 13%, from £214,000 to £242,000.  The East of England will see the largest percentage increase of 19%, meaning that the average house will cost £324,000. It is an ideal time to invest in property in Peterborough, a London commuter city that is expected to rise in desirability due to the amount of investment the area is receiving.

There is a general consensus amongst property experts that luxury properties in London will be hardest hit. A recommended strategy is to consider towns and cities outside of London and the South East, where property prices are generally lower and the market has been less affected by the hike in stamp duty. Average house prices in a city such as Liverpool stands at £164,563 (as of 1^st January 2017), and an extra 3% paid in stamp duty is less pronounced than what it would be on a significantly more expensive property.

The UK’s property market has always been viewed as a stable investment, to both overseas and domestic investors. Political events in 2016 did little to destabilise the boom and bust cycles, so those looking to own property as a medium-long term asset should not be deterred.

Alternative options

Alternatively, there are certain investments that bypass stamp duty charges, such as commercial property investments. Individuals looking to avoid stamp duty charges altogether should consider loan note or office space investments, many offering high returns at a low entry point.

In conclusion, Brexit is predicted to have a marginal effect on the property market compared to rise in stamp duty, and it is still possible that the government could reverse the increase when it becomes apparent that it has negatively affected the tax revenue. Britain’s property market is still a viable investment as the country remains politically stable, and demand continues to outstrip supply, an issue that is further exacerbated by the government’s failure to build an adequate number of new houses.

9 January

http://www.theweek.co.uk/house-prices/61987/house-prices-hit-by-southern-rail-strike-chaos

UK house prices hit an all-time high in December after growth picked up pace for the second consecutive month, reports the Halifax house price index.

Based on the bank’s own lending figures, it now costs £222,484 to buy a typical property, a rise of 1.7 per cent.

Halifax’s three-monthly rolling figure, which it says is more accurate, also rose for the second month in succession and at 2.5 per cent, is at its highest level since last March, when the rate was 2.9 per cent.

On an annual basis, prices jumped 6.5 per cent, up from six per cent in November and a 2016 low of 5.2 per cent in October, says FTAdviser, although still well below the ten per cent peak reached in March.

Overall, property has continued to recovery following a sharp slump in activity in July and August in the immediate aftermath of the Brexit vote and amid an ongoing affordability squeeze.

Prices are being helped by a persistent shortage of houses for sale – the number of properties on estate agent’s books is hovering at a record low – and low interest rates.

Economists expect this year to see a continuation in the trend of fewer transactions and slower, but still positive average growth. London, however, could buck the trend and see prices fall on average.

Halifax predicts annual house price growth will drop to between one and four per cent by the end of 2017.

However, some expect the Brexit uncertainty to hit the economy harder when Article 50 is triggered, hitting average house prices across the country.

Nevertheless, others say the market could continue to show surprising resilience.

Alex Gosling, chief executive of online estate agents House Simple, said: “Considering the economic uncertainty the housing market faced in the second half of 2016 and how it responded, it wouldn’t be a major surprise if those predictions were knocked out of the ballpark.

“While mortgage rates remain low and assuming the labour market doesn’t being to falter, there’s no evidence to suggest the property market is about to hit a brick wall.”

Property investors ready to get into build-to-rent sector. Big time.

Property Wire

London and other global property markets could benefit from Trump election

http://www.propertywire.com/news/global-news/london-global-property-markets-benefit-trump-election/

Property markets around the world could benefit from the election of Donald Trump as the next President of the United States but a lot will depend on how the country’s economy and dollar performs.

Experts believe that it could be good news for US investment in the UK property market as London in particular is regarded as a safe haven for real estate investors while the Canadian market could suffer as Americans look to buy elsewhere.

The election result saw the value of the dollar immediately fall and a prolonged dip could have a positive effect in that investors might want to move their money to other international markets, but it could also mean property buyers getting less for their money.

According to Adriano Amorese, a construction and property expert and partner at international law firm Berwin Leighton Paisner, Presidential elections traditionally result in a dip in the dollar which corrects once the new President takes office in the New Year.

But he believes that a prolonged dip in the value of the dollar could lead to a slowdown in US investment activity in the UK property market. ‘Presidential elections traditionally result in a dip in the value of the dollar, which corrects once the new president is elected and stability returns. However, a Trump victory is something of shock to the political system. It could result in a prolonged period of uncertainty and downward pressure on the dollar,’ he said.

‘The good news is that the significant drop in the value of the pound due to Brexit should hopefully mean the dollar has further to fall before this starts affecting transatlantic investment decisions,’ he explained.

But Camilla Dell, managing partner at independent property buying agency Black Brick, believes market turmoil and weakening of the dollar is likely to result in a rise in global investment into the prime central London property market.

‘We are already seeing a flight to safe haven assets such as gold this morning and prime property in London has always been seen as a safe haven asset in turbulent times. We are also likely to see some wealthy US citizens, particularly those most offended by Trump, move to the UK as some of our American clients hinted to us prior to this outcome,’ she pointed out.

‘Foreign buyers, particularly those from the Middle East and of Muslim faith, may enter the London property market, too, as they decide not to buy property in the US due to his remarks about banning Muslims from entering the country,’ she added.

Simon Tollit, central London sales director for Sotheby’s International Realty, also revealed that there has been an increase in US purchasers looking to buy in and around the prime central London market.

‘Whilst the impending election was causing concern for some, it is more likely this was being driven by the weak pound rather than the election results. It is possible this interest from US purchasers may wane as we have already seen the pound make strong gains against the dollar following the vote, with these currency shifts in mind we expect other foreign buyers to look to the London property market as a consistently safe investment,’ he explained.

‘Investors do not like to buy in uncertain markets and a win for Trump means a change of party, meaning changes in policy are far more likely. New York and London are historically rival property markets, meaning this result could sway buyers to favour a London purchase instead,’ he added.

The Australian property market could also benefit as it too is regarded as a safe haven for property investors. However, it does have more restrictions on overseas buyers than markets like the UK.

Trump’s win will drive more foreign investors to the Australian property market, according to Nerida Conisbee, chief economists at the REA Group. ‘It makes investment in Australia more attractive for large foreign developers and institutions, as well as high net worth private buyers looking to purchase residential property,’ she said.

‘Australia will be a beneficiary of this as it is considered to be one of the safest markets in the world,’ she pointed out but added that in uncertain markets, people don’t like to buy.

The US election results could also result in a change in buying habits for South Americans who have traditionally bought in, who suggests that Portugal could benefit. ‘South American investors, especially from Brazil, are now much more likely to steer clear of usual favourites like Miami and New York. With a flexible golden visa programme and cheap prime real estate, Lisbon was already a strong contender to Miami and a Trump presidency will only build on this trend,’ he said.

Historically, Americans have been the largest foreign buyers in the Canadian property market, especially in places like Muskoka in Ontario and Whistler, but he believes that a dip in the US dollar will impact Canadian real estate prices and that impact could last years.

He pointed that property markets in Nova Scotia and New Brunswick plunged as much as 60% after the 2008/2009 financial collapse when Americans pulled out en mass and some of these markets are still in the process or recovering, almost a decade later, so could be vulnerable again.

But for the US property market policies outlined by Trump may be beneficial such as tax cuts and infrastructure spending. ‘At the end of the day, the fundamentals underlying the US real estate market are sound. We believe it would take a very significant exogenous shock to derail the market, and Trump’s win is unlikely to prove enough of a shock to sharply reverse that progress, particular given the checks and balances in place,’ said Michael Gately, head of real estate research at Barings Real Estate Advisers.

 By Shane Croucher   October 27, 2016 09:26 BST

URL: http://www.ibtimes.co.uk/what-property-industry-wants-when-uk-triggers-article-50-1588510

We asked those in the residential property sector what they want from Brexit deal. Here’s what they said.

Brexit negotiations won’t begin until the UK government triggers Article 50 the rules for exit of the Lisbon Treaty, which kickstarts the formal process to leave the European Union. That will happen before March 2017, said Prime Minister Theresa May.

But when that final deal comes, what does the residential property sector hope to see in there? IBTimes UK asked a number of different players in the sector what they want from the Brexit deal. Here’s what they said.

Paul Smith, chief executive of haart

We need a quick, clean break from the EU, as opposed to drawn-out negotiations. Brexit may or may not mean Brexit, but uncertainty around negotiations certainly does mean uncertainty in the residential property market. This is particularly true for housebuilders who are currently sitting on land, holding off developing until they have more clarity on the outcomes. Clarity on the government’s position and guarantees of further investment in housebuilding would stop developers pressing the pause button, as well as provide some relief for Britons worried about whether or not to buy or sell a house.

Fortunately, the residential property market has very few ties to the European Union, and there is very high domestic demand for new homes, so we are not too reliant on overseas buyers. However, greater autonomy would definitely be welcome, and the Mortgage Credit Directive is a good example of unnecessary European bureaucracy that Britain simply does not need. We shouldn’t be afraid of Brexit at all – mild economic turbulence is to be expected, but in the long-run our new found freedoms and a reduction in red tape should pay dividends.

Sadly it seems that some members of the government are determined to keep us in the single market, which would effectively mean being a member of the EU and obliged to follow their regulations, without having any say whatsoever in determining the rules. People voted to be free of the EU, so a halfway house deal that would see many Brexit promises reversed must be avoided. The market is robust, but stagnation will ensue unless a clear position is quickly agreed. It’s time for Theresa May to bang some heads together and deliver the Brexit the nation voted for.

Nick Davies, head of residential development at Stirling Ackroyd

The shortage of homes compared to the number of aspirational buyers should ensure the residential property market will come through the Brexit process relatively unscathed. However, the current uncertainty is reducing the incentive for people to move home, with many potential buyers and sellers waiting to see what happens with negotiations before moving. Therefore, a relatively quick negotiation process would be beneficial to the residential market.

As the UK isn’t building anywhere near enough homes, the housebuilding industry should also be supported during this period of negotiation, with the Autumn Statement and 2017 budget proving as ideal opportunities to extend investment in housebuilding. The country can’t afford for the delivery of new homes to slow any further. If it does, house price rises will pick up pace, ensuring it will be even harder for first-time buyers’ to get their first foot on the ladder.

In London, it’s vital that the strengths of the City and Silicon Roundabout are both preserved and protected. Technology and finance are two key pillars of the UK economy, which will drive the country’s future growth. The residential property market relies heavily on their services, with London’s market also relying on professionals in these sectors buying homes here, and this has helped to drive the regeneration of much of East London with its close proximity to the City. Highly skilled workers must also retain easy access to the UK to enable them to continue to live, work and buy here.

London’s market also depends on its place as one of the world’s greatest cities, allowing it to draw in people and investment from across the globe. The current decline in the currency is likely to encourage international buyers and capital, with homes in London now 7% cheaper year-on-year for European buyers and 8% cheaper for Americans. The negotiations should not hinder investment in London or place it’s status at risk.

Andrew Smith, chief investment officer of Hearthstone Investments

As a fund manager, Hearthstone focuses on the link between economic growth and property investment performance, so we are looking for a deal that offers the best prospects for economic growth. We favour a “soft” Brexit, retaining access to the single market and without draconian restrictions on the movement of skilled workers and students.

We see this as the best way to secure the future of the UK’s financial and service sectors, particularly in London and the south-east, but also the regional economies where major employers are dependent on successful international trade. The government will also need to be clearer on its regional development funding policy as EU aid ends, and it’s far from clear where such money would come from.

That said, we think residential property has less to fear from a ‘hard’ Brexit than commercial real estate. It tends to be more resilient in times of instability and uncertainty: demand depends on the number of households, which isn’t affected much by changes in economic conditions. Residential rents are generally a good inflation hedge.

Whatever the eventual deal, the UK has a housing supply shortage. As investors generally want new stock, any restrictions on the supply of skilled construction workers could make a bad problem worse. While existing investors might benefit if undersupply pushed prices higher, it would limit much-needed new institutional investment in the sector.

Giorgio Buttironi, Policy and Public Affairs Officer at the National Federation of Builders

With the Housing Standards Review, the UK already builds excellent quality homes. It doesn’t necessarily need to match one-size-fits-all EU regulations to do that. For example, homes in Sweden will have different energy efficiency requirements from those in Cyprus.

Brexit should also mean appropriate policy to deliver homes. Once again a one-size-fits-all approach to procurement doesn’t deliver the appropriate output of housing supply. For example, a mandatory upper threshold on government finance for housing projects impacts both financing and procurement.

With an ongoing skills crisis and impending retirements, the government is perfectly placed to tackle the Brexit shortfall by ensuring an appropriate training and upskilling programme is in place. SMEs, who employ workers within a 19-mile radius of their head office, are already positioned to achieve this target.

Steve Turner, spokesman for the Home Builders Federation

I think our main asks are labour – we simply have to maintain access to skilled labour if we are to continue to increase output as required. And stability. We need as stable an economy, and political and policy environment, as possible so that demand remains and the industry can plan ahead.

Chris Norris, head of policy, public affairs and research at the National Landlords Association

I don’t think it would be possible to suggest that the UK’s residential sector has one coherent wish-list from the UK’s exit from the European Union. Brexit is very unlikely to change the stability of residential property as an asset class in the long-term, as most investment originates domestically and is fairly small-scale. Larger investment will likely slow, as funds evaluate the likely impacts, but provided that demand remains strong it will remain viable.

Depending on the eventual decisions concerning the movement of people, local markets which depend on migrant labour may suffer in terms of reduced demand – but it is far too early to say how acute or widespread this could be, if it happens at all. The biggest danger for private landlords in the UK is likely to be that while the British government obsesses over how to extricate the country from the European Union it fails to recognise the devastating impact some of its recent domestic policies are having on the housing market.

David Smith, policy director for the Residential Landlords Association

With the government introducing criminal sanctions from December for those found to be renting to tenants without the right to reside in the UK, landlords need certainty about the status of EU nationals currently living in their properties.

Until a firm assurance can be given that such tenants will continue to have the right to rent when Brexit begins in 2019, many landlords will likely play it safe and conclude that renting to those from elsewhere in the EU is too much of a risk to take.