Fall in properties for rent means supply and demand gap widening


The number of rental homes on the market with letting agents dropped between December and January, while the number of people registered with agents looking for property to rent increased.
[crb_image link=”https://www.buyassociation.co.uk/advice/property-investment-starter-course/” image=”https://cdn2.hubspot.net/hubfs/1717782/Asset_Store/WebCTA/cta.jpg” align=”left”]

Month-on-month figures in January showed a decline in the number of rental properties per letting agent branch, from 200 in December down to 184, according to statistics from ARLA Propertymark. The figures had seen some improvement since their last monthly low of 182 per branch in October, but the situation seems to have once again reversed.

Meanwhile, an average of 70 prospective renters were on the books per letting agency branch in January, a rise of more than 15% from December’s average of 59. This widening gap between the number of tenants looking for a home and the number of landlords offering one has been partly blamed on the recent government actions that have made the buy-to-let market less attractive to many.

Rising rents

ARLA Propertymark’s chief executive David Cox believes renters could struggle in 2018, particularly considering that one in five tenants also saw their rents go up in January – although rental price rises were relatively flat over the course of last year, increasing at a slower rate than inflation, according to research from HomeLet.

Cox commented:

“Housing stock is falling as rising taxes continue to force established landlords out of the market and deter entry into the sector – and the volume of renters is increasing as the cost of buying a home is moving further out of reach for many. Ultimately, until the prospect of investing in the buy-to-let market is more attractive for prospective landlords, and stock subsequently increases, tenants will continue to feel the burn.”

Section 24 of the Finance (no. 2) Act 2015 is one major change brought in by the government that is affecting, and will increasingly affect, landlords. The regulation means that landlords will no longer be able to deduct the full cost of mortgage interest payments on their buy-to-let properties before they pay tax, which will up the bill for most landlords and even push some into a higher rate of tax. Section 24 is being phased in gradually, starting in April 2017, with 2020 the final date when 100% of mortgage and finance costs will be limited to only 20% tax relief.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free


Fall in properties for rent means supply and demand gap widening


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.