Supply of rental homes on the rise as more landlords buy UK property
The number of properties available to rent in the UK property market is on the rise, as the volume of landlords who are investing in the private rented sector has grown in the past 12 months, new data shows.
According to a new report released by property portal Rightmove, with London excluded, in the second quarter of the year, there was a seven per cent rise in the number of rental homes listed in the UK when compared to the same three-month period a year ago.
In London, there was a slightly more significant increase in the same period, with the data showing a swell of eight per cent in available stock year-on-year in the capital.
The rise across the nation in rental properties available is most likely down to the drop in investment seen last year during Quarter two, when landlords were erring towards shying away from investment after the introduction of a three per cent levy on Stamp Duty for buy-to-let properties.
However, the fact that rental homes are growing in number can still be seen as a real positive, especially at a time when political uncertainty, mostly surrounding the UK's exit from the European Union and the Brexit process, is still a factor.
"Many thought that rental supply would constrict this year, as landlords sold up and looked to invest their money elsewhere, but clearly this isn’t happening yet," said Rightmove's head of lettings Sam Mitchell.
However, while rental stock is on the rise across the UK this year, the data also indicates that the price paid by tenants is still growing. At present, said Rightmove, the average resident is having to pay £790 per calendar month (London excluded), which represents an increase of 2.8 per cent when compared to the same time a year ago.