New figures released today have indicated that there was a 15% month on month fall in new rental properties during August, in nearly 90% of towns and cities in the UK.
Despite 86.6% of major UK towns and cities experiencing a fall in new rental listings, there was still some good news for investors looking to take out landlord insurance on a property.
Ups and downs
The investigation conducted by crowdfunding platform Property Partner analysed the number of new rental properties being advertised in the period between 1st-28th August 2016. The platform then compared this to July’s data.
Hartlepool in the North East saw the largest decline in new property listings, experiencing a fall of 36.5%. Also seeing large drops were Canterbury (-30.4%), Wakefield (-28.5%), Loughborough (-28.3%), Colchester (-26.5%) and Cardiff (-25.9%).
London saw falls of 16.4%, while new rental listings in Manchester and Birmingham fell by 18.4% and 16% respectively. However, at the other end of the scale, Gloucester saw rises of 28.5%.
Dan Gandesha, chief executive of Property Partner, noted: ‘there’s usually a seasonal drop off in new rental properties coming onto the market over the summer. But July saw the highest numbers of buy to lets being advertised since the stamp duty hike in April, whereas last month experienced some dramatic falls in most parts of the UK.’
Gandesha observed that, ‘traditional landlords have it hard of late. Alongside the stamp duty surcharge, the banks have imposed tougher lending criteria and cuts to mortgage interest tax relief will begin to take effect next year. Profits have been hit and this could force many landlords to sell up. If September fails to pick up and there’s a shortage of available rental properties, rents could be pushed up. Hopefully, for tenants, this won’t be the case.’
Concluding, Gandesha said that the most pressing issue is to get the UK building more homes, for all tenure types.
‘Demand for rental homes has been increasing over the past decade as more people move away from home ownership and become long term renters. These tenants are quite rightly demanding a higher quality of service delivered by professional landlords. Anyone now looking to invest in residential property would be wise to consider alternatives to traditional buy to let, which do away with the hassle, expense and tax implications.’