7 Jun

Fall reported in rental supply

Fall reported in rental supply

The number of rental properties in the UK has fallen, with rents expected to continue to rise, according to new figures.

Data from the Association of Residential Lettings Agents (ARLA) shows the number of residential lets being managed by branches did increase by eight per cent in April - but still remain below the levels seen in 2015.

The increase in properties compared to March was largely seen as a result of activity ahead of the stamp duty changes, but supply is now five per cent below that reported in April last year.

This means the average number of properties being managed by each branch is down to 183, while it stood at 193 at the same point in 2015.

For tenants it could mean the decrease in supply could push up rental costs in the long-term, with landlords also changing rental levels to recover the increased stamp duty charges.

“It’s likely that this increase in supply is only temporary. At the end of April we saw a flurry of landlords seizing the last few moments before the stamp duty rise to complete sales, triggering an increase in the supply of empty rental homes to be filled this month,” said David Cox, ARLA managing director.

“However, we expect that fewer investors will be taking on buy to let properties over the next six months, following the price hikes, meaning that once these properties are filled we’ll see supply nose dive once again,” he added.ADNFCR-1222-ID-801819803-ADNFCR

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