New research shows that 40% of key towns and cities in Britain saw falls in new rental listings during September, in comparison to the previous month.
The study from crowdfunding platform Property Partner looked at data from 89 towns and cities.
Data from the report indicates that the decline is due to landlords being impacted from changes in the buy-to-let market. Eight in ten locations saw a drop in new rental listings in August and in September.
Property Partner has compared results between the two months.
Grimsby was the worst hit area for new listings in September, with numbers falling by 26%, after seeing a drop of 5.15% in August.
It appears numbers of investors taking out landlord insurance is falling across the UK. Oxford saw new rental listings slip by 23.9%, Canterbury by 23.9% and Brighton by 18.7%. In Manchester, new rentals slid by 13.04% in September, while in Birmingham, they were down by 13.69%.
Least affected locations
On the other hand, the locations least affected included Cambridge, where new rentals were down by 0.89%. In Glasgow, rentals fell by 1.34%, in Sheffield by 1.76% and in York by 1.83%.
London however saw an increase in new rental properties of 1.43%.
Dan Gandesha, chief executive officer of Property Partner, observes that while a seasonal drop off could be expected, the number of new listings is very low.
Gandesha said: ‘The new stamp duty hike in April for buy to let and second homes saw a rush by landlords to beat the deadline with a subsequent rise in stock levels. But now that the dust has settled, we’re seeing some significant declines in new listings, particularly surprising after the summer.’
‘Alongside tougher lending criteria and cuts to mortgage interest tax relief starting next year, many landlords will be now doubting if it’s worth the hassle, particularly in the South East. Profits have been hit hard and those landlords that decide to stick with it, may just be forced to push up rents – not a promising prospect for tenants,’ he added.