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New rental listings rise by 11% in October
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
New research from crowdfunding platform Property Partner indicates that the rental market experienced a rebound during October, with a rise in listings.
According to the platform, there was a 11.4% rise in new buy-to-let properties being advertised.
Listings growth
After a slow September, almost two thirds (66.3%) of the UK’s major towns and cities saw growth of new rental property listings.
The study assessed 89 UK towns and cities and analysed the number of new rental properties listed between the 1st and 28th October, then compared them to the same period in September.
Swansea led the way with a magnificent rise of 210.9% in new buy-to-let properties listed during the last month. In actual terms, there were 314 new homes listed, in comparison to 101 in September.
Newcastle-upon-Tyne (194%), Sheffield (134.6%) and Leicester (125,4%) also saw significant rises in rental property listings.
On the other hand, new rental stock in London slipped by 3%, following a rise of 1.4% in September.
The overall figures come as a boost to the sector, after a separate report suggested new buy-to-let activity was down 13.3% in the year to October.
New rental listings rise by 11% in October
Reassurance
Dan Gandesha, CEO of Property Partner, observed: ‘After last month’s lower than expected figures, October’s surge in new buy-to-let listings is reassuring. Instead of September, heralding in a new era for depressed rental levels-as some predicted-it’s instead starting to look like the market was caught by a prolonged summer lull.’[1]
‘A quarter of homes bought over the summer months were either BTL or second homes, according to the HMRC, and this new rental stock is now finally hitting the market. But landlords have had to grin and bear a barrage of bad news – a hike in stamp duty, cuts in mortgage interest tax relief from next year, and tougher lending criteria. Profits have shrivelled especially in the South East, and a recent forecast by a leading high street agent of rents across the UK rising faster than house prices over the next five years, is hardly surprising,’ he continued.[1]
Negative affect
Mr Gandesha went on to say that: ‘Many traditional landlords though will be feeling the pinch and perhaps doubting if it’s worth the hassle, particularly in the South East. If significant numbers of investors start selling up then rental supply could be negatively affected.’[1]
‘By the New Year, we should have a better indication of how buy-to-let investor confidence is faring after the uncertainty of this year, but in the short term, October’s buoyant figures are encouraging,’ he concluded.[4]
[1] http://www.propertyreporter.co.uk/landlords/btl-listings-up-11-in-october.html
