15% Fewer Rental Properties Put On The Market In August
Number of properties newly listed for renting falls throughout the country.
The crowdfunding platform Property Partner have compared the number of rental properties being put on the market between the 1st and the 28th of August to the number that entered during the same time frame in July. The results showed a drop of 15% between the months.
Dan Gandesha, C.E.O. of Property Partner points out part of this fall is due to normal seasonal changes in activity as the busier summer period comes to an end. Mr Gandesha adds that July saw unusually high activity with “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 U.K..”
Tough Environment For Traditional Landlords
Mr Gandesha sees an environment in which “traditional landlords have had 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.”
Difficulties faced by landlords could translate to tenants having to pay more as Mr Gandesha explains, “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.”
Breakdown By Region
Falls were seen across the country with new buy-to-lets in Canterbury, in the South East down 30%. Wakefield in the North of England and Loughborough in Central England also made the list of the most affected. Overall, the North East that saw the greatest drop with Hartlepool leading the trend.
Further down the list of those affected, Manchester saw a fall of 18.4%. London 16.4% and Birmingham 16%.
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