Oversupply of rental property leads to slowest annual rent increases since 2014

Updated: July 6, 2017

As anticipated, it seems that the surcharge on stamp duty and the fall in tax relief on buy-to-let mortgage interest is certainly making landlords think carefully about their next steps.

Just this month, it has been revealed that the proportion of UK landlords who intend to sell property in the next year has more than doubled since July 2015 – rising from 7% to 16%.

Moreover, 84% of landlords say that for the time being, they have stopped looking to purchase new properties and are instead sitting tight as they slowly adjust to the changes.

According to Rightmove’s rental tracker, there are 12% more rental properties available across the UK compared with the same period last year with the slowest rate of increase since 2014.

The upside to all of these statistics, however, is the imbalance between supply and demand which still exists in all corners of the country and which will no doubt continue to exert pressure on rents. It is predicted that further rental growth will continue in virtually all areas over the next twelve months, as house prices remain out of reach for many.

London is still an exception, of course, where rents may continue to soften and flatten out when looking at the next twelve months as a whole.

Still, the good news is that even with the painful tax bite, this isn’t such a sorry tale for existing and all would-be landlords.

With more properties set to flood the market over the coming months (and years), in order to reduce void periods and loss of rental income, landlords should carry out competitive research on their local market before advertising to find a tenant.

We can help landlords find out how much their property is worth with a free best price valuation guide using tools only available to member letting agents of Rightmove and Zoopla.  An expert letting agent will research your local market by comparing what has been advertised in the last 6 – 12 months, how long properties are taking to let in the area, the demand levels from tenants and we’ll make recommendations how best to present your property.

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