There has been a significant fall in the number of homes available to rent over the past 12 months, according to new figures published in the Agency Express Property Activity Index.
Across the whole of the UK, the number of new listings in July was 9% lower than the same time last year, the largest fall in rental stock since 2013.
At the same time as the number of properties being listed for rent fell, the number of properties being let increased. The findings suggest that while the supply of rental properties across the country is falling, the level of demand from tenants is continuing to grow.
Stephen Wilson, managing director of Agency Express, said; “This month we have witnessed much slower movement throughout UK lettings market.
“While it is not unusual to have a slowdown in activity during July, we are seeing far less rental properties hitting the market compared to 12 months ago.”
The figures from Agency Express come as a separate survey of landlords conducted by the Residential Landlords Association revealed that 22% of investors are planning on selling properties, which likely lead to the gap between supply and demand of homes for rent increasing further.
The fall in available rental properties is being attributed to the impact of recent changes to how landlords are taxed, with Section 24 phasing out mortgage interest tax relief. Stamp Duty has also been hiked for second homes and landlords are facing rising costs as tenants’ deposits have been capped.
Falling rents in some areas are also affecting landlords’ finances and the viability of their properties.
Average rents in London fell in the second quarter of this year, according to a new report from Foxtons.
If you’re a landlord affecting by recent tax changes and falling rents, or you have properties in negative equity, contact Landlord Debt Advisory for a consultation on 0161 222 4311 or go online to landlorddebtadvisory.com.