The supply of rental properties on the market slowed down across the UK in October, according to the latest Property Activity Index from Agency Express.
Around the country, the amount of new rental properties coming onto the market rose by just 2.6%, down drastically from the 11.5% recorded in 2015. The number of properties let during the period remained on trend however, dropping by 6.3% – marginally less than the figure for last October.
On a regional basis, eight of the 12 locations recorded in the Property Activity Index experienced increases in the supply of rental properties, while just four saw growth in the number of properties let.
The best performing regions for the month include:
Properties to let
East Midlands: +20.4%
- West Midlands: +13.4%
- Central England: +12.4%
- Scotland: +10.4%
- North West: +6.1%
- South East: +12.7%
- Scotland: +11.7%
- North East: +7.9%
All regions other than Scotland recorded some level of decline in October compared to last year.
After two consecutive months of decreases, Scotland bounced back with robust growth in October. The supply of rental properties rose by 10.4%, while properties let increased by 11.7%. This growth marked a record best October for the country, although demand continues to outpace supply. Over a three-month rolling period, figures are still down, with properties to let at -1.70% and properties let at -1.60%.
The largest decreases in October’s Property Activity Index were seen in Yorkshire and the Humber. The supply of rental properties fell by 3.6% and properties let dropped by a huge 14.1%. The last decline for October in this region was recorded in 2012.
The Managing Director of Agency Express, Stephen Watson, says: “As we look back at the historical data recorded by the Property Activity Index, we can see over the last three years October has been a buoyant month for new rentals across the UK lettings market.
“However, this year, the figures paint a different picture, evident by the drop in supply. Historical trends within the indices also indicate that we should not see a decline in figures until December, but with the current rate of change, it will be interesting to see what November’s and December’s data brings.”
Has your buy-to-let activity over the past year had any impact on the supply of rental properties across the UK? With many forthcoming regulations and obligations, now might be the time that landlords decide to leave the private rental sector. Keep up with your responsibilities here.