Taylor Scott International News
New rental properties listed by landlords in the UK in May fell by 15.4% compared to the previous month with 91% of towns and cities recording a fall in supply, new research shows. The biggest fall in rental supply was in Worcester with a decline of 42.6% month on month, followed by Bedford with a fall of 41.7% and in Derby it was down by 41%, according to the figures from property crowdfunding platform Property Partner. Much of the decline is probably due to a rush of landlords putting rental properties on the market in April ahead of stamp duty changes, according to the firm’s report. It also shows that new listings fell so far in many areas of the country in May, that they actually dropped substantially below March levels, before the 3% stamp duty surcharge for additional homes came into force. ‘As anticipated, the rush of investors buying before April’s stamp duty hike caused a temporary spike in rental supply, which now seems to have been swiftly reversed,’ said Dan Gandesha, chief executive officer of Property Partner. ‘New rental listings in May were down almost 6% on March, before the surcharge spike. With high and rising demand, any prolonged fall in rental supply would only have negative consequences for tenants,’ he explained. He predicts that it’s likely that rents would increase as landlords, facing less competition, pass on their additional purchase costs to tenants and a lack of available properties would also force more tenants into accepting poorer quality accommodation, particularly in areas with an acute shortage of stock. ‘June’s figures will show whether this is just a market adjustment, or something more fundamental. It’s unfortunate timing with the European Union referendum just two weeks away,’ Gandesha pointed out. ‘But April’s stamp duty changes are just the first in a series of additional costs being piled on traditional buy to let. In the longer term, the private rented sector must be professionalised, to provide Generation Rent with enough good quality homes at rents they can afford,’ he added. Taylor Scott International
Taylor Scott International, Taylor Scott
