Volume of rental homes up, but those ‘to let’ in decline
New data has revealed a rise in the volume of property across the UK being rented out over the past year.
The Property Activity index indicated that 7 out of 12 regions across the UK reported a rise in the number of rental properties.
Overall, the number of rental properties showed growth of 3.6% last month, a considerable improvement on the same month in 2016, when the figure was -5.2%.
In the meantime, the latest Agency Express Property Index has underlined that demand from tenants has been on the increase again.
The North East led the way with growth of 25.3% in the number of rental properties, followed by East Anglia at 20.8% and the West Midlands at 13.6%.
Both of the above surveys did also indicate a reduction in the number of properties available ‘to let’ in the past 12 months.
July saw the number of new listings available ‘to let’ slip to -9%, the sharpest fall in four years.
Andrew Turner, chief executive at Commercial Trust, commented:
“This data is another positive sign for buy-to-let landlords, as it underlines the continued demand for rental properties.
“The fall in the number of properties available to let is to be expected, as there has been a decline in the number of properties purchased since the introduction of the stamp duty surcharge and the reduction in the amount of mortgage interest tax relief available.
“However, reinforced demand has to be a good sign for the market and offers encouragement for landlords.”
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.