Supply of rental properties rises in UK, but rents still going up too
There are more properties available in the UK’s private rented sector but despite this improvement in supply rents are continuing to increase, the latest research shows.
Supply increased by 7% in the second quarter of 2017 outside of London compared with the same period in 2016 and in London it was up 8%, according to the rental tracker report from property portal Rightmove.
But despite the widened choice, asking rental rents are continuing to rise, up by 2.8% outside London compared with the previous quarter to reach £790 per month on average.
Within London, asking rents have decreased by 0.2% compared with the previous quarter, averaging £1,934 per month.
Ascot, Bath, Salford, Newcastle, Leeds, Cambridge, Birmingham, Cardiff and Aberdeen
currently offer some of the biggest concentrations of available properties in the private rented sector based on the areas with the highest numbers of available rental properties, as a proportion of total housing stock in the areas.
The widened choice has come despite a stamp duty rise for additional homes which was expected to his the sector along with other tax changes for landlords.
‘Many thought that rental supply would constrict this year, as landlords sold up and looked to invest their money elsewhere, but clearly this isn’t happening yet. Perhaps landlords are re-mortgaging their buy to let properties instead, as they still feel it’s a better investment than looking to other industries,’ said Rightmove’s head of lettings Sam Mitchell.
‘It could spell good news for tenants coming to the end of their lease as they might find there is slightly more choice than last year. Anyone hoping for a drop in prices due to the extra choice will be disappointed though as rents are following a very similar trend to previous years,’ Mitchell added.