Since the arrival of the pandemic, there have been 300,000 fewer properties that have come onto the rental market. Not only does this mean that potential tenants are being faced with less choice of rental properties, but it is driving Landlords to raise rents by an average of £60 per month.
Outside of London, rental growth reached its highest figure on record since its monthly lettings index began in 2012. The average rent of a newly let property is now 8% higher than it was in February 2020.
Properties available to rent in town locations have fallen 28% whilst available properties in country locations have fallen 52%.
Aneisha Beveridge, head of research at Hamptons, says in a report, “This year we’ve seen a sharp decline in the number of rental homes coming onto the market. Would-be tenants are now faced with significantly less choice, which in turn is pushing up rents. And with many landlords having multiple offers on the table, half of investors have been able to increase the rent they charge.”
It’s a very different story within London. The rental growth seems nonexistent.
Aneisha Beveridge is optimistic that there are signs of change. Property investments by Landlords are slowly on the rise. As they are hoping to beat the original Stamp Duty deadline, they are making more buy-to-let purchases.