Rents look set to rise as new figures show a drop in the number of buy-to-let properties listed on the market.
The data highlighted a fall in the number of homes available to rent in nine out of 10 major towns and cities in Britain.
In 87.9 per cent of urban areas, the number of available rental properties was down in August compared to the previous month, according to crowdfunding platform Property Partner.
Overall, there has been a 15 per cent drop in new rental listings across 90 British towns and cities.
This is good news for landlords as the shortage in rental properties could provide them with an opportunity to increase rents. This is because tenants may have no option but to pay the increase if they cannot find an alternative, cheaper home.
The biggest drop in the number of rental properties advertised was in Hartlepool in the north east, where the number of listings was down 36.5 per cent.
This could be the best place to increase rents if supply is low.
The research found a further 11 towns and cities that experienced a shortage of new buy-to- lets being listed, including Canterbury (-30.4 per cent), Wakefield (-28.5 per cent), Loughborough (-28.3 per cent), Colchester (-26.5 per cent) and Cardiff (-25.9 per cent).
London saw new rental property listings down 16.4 per cent between July and August, while Manchester and Birmingham saw new rental adverts fall 18.4 per cent and 16 per cent respectively.
Dan Gandesha, chief executive of Property Partner said: "There’s usually a seasonal drop off in new rental properties coming onto the market over the summer.
But July saw the highest numbers of buy-to-lets being advertised since the stamp duty hike in April, whereas last month experienced some dramatic falls in most parts of the UK.
“Traditional landlords have had it hard of late. Alongside the stamp duty surcharge, the banks have imposed tougher lending criteria, and cuts to mortgage interest tax relief will begin to take effect next year. Profits have been hit and this could force many landlords to sell up.”
However, he added that there may be welcome news ahead for landlords.
“If September fails to pick up and there’s a shortage of available rental properties, rents could be pushed up,” he said.
“Demand for rental homes has been increasing in the past decade as more people move away from home ownership and become long-term renters” he added.
|Town/City||Region||% Decrease in new rental property listings|
|St. Helens||North West||-24.86%|
Do you have plans to increase your rent? Tell us in the comments.
Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.Subscribe to our newsletter
99 Gresham Street
29 St Katherine's Street
© Copyright 2019 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.