- Supply of rental properties increase nationally by +11.5%
- Increase in supply predicted to be short lived
- Average rent excluding Greater London now +5.1% higher than a year ago
- Average rent in London is now up +7.7% compared to a year ago
- Council of Mortgage Lenders report Buy-to-let repossessions down hugely
There was a short lived increase in the supply of rental properties seen throughout the UK in April following the rush by buy to let landlord's to beat the rise in stamp duty. Research showed that on a national basis the supply of rental properties increased by 11.5% (comparing March stock with April) and our Sidcup office witnessed a similar increase in the supply of rental properties.
Unfortunately it seems that the increase in the supply of rental properties will be short lived and options for tenants could become more limited over the next 12 months as some landlords could be put off purchasing new investments so soon after the stamp duty surcharge and others could wait to see how losing mortgage interest tax relief from next year affects their current buy-to-let investments. With a continued shortage of property and the introduction of further taxation changes next year many experts only see rents going one way as many landlords look to pass their higher costs on and benefit from the continuous high demand for rental properties.
According the latest Homelet rental index for April residential rents increased in all but one region of the UK over the three months to April taking the average rent, excluding Greater London to £764 per month. It now that the average rent in the UK outside of Greater London is now +5.1% higher than a year ago while the average rent in London is now £1543, up +7.7%.
Finally the Council of Mortgage Lenders (CML) has recently reported that just 600 buy-to-let properties were repossessed in the first quarter of 2016, contributing to the lowest ever number of mortgages ending in repossession. If accurate, this would be the lowest level of mortgage repossessions since records started in 1982 when there were just 6.9 million mortgages, against 11.1 million today and perhaps is a result of tighter lending criteria recently introduced.
For more information about the local rental market or investment opportunities within the area contact our friendly staff on 020 8269 6699 or email me direct firstname.lastname@example.org.