19th
Sep 2016
A property crowd funding platform predicts that tenants are going to face higher rental prices as there is a steep decline in the numbers of new rental properties available in the PRS (Private Rented Sector).
According to the platform's latest figures, it reveals that in August, 87.6% of the largest cities and towns have a lower number of new rental 'homes' being advertised, this is when being compared to the preceding month's totals.
The figures claims that throughout the UK there was a significant fall of 15% in numbers of new buy-to-let properties available in ninety cities and towns.
The property platform said that overall most regions experienced a drop in the supply of new rental 'homes'. The North East had the highest decline of rental listings of 36.5% in August when compared with July.
Canterbury was amongst eleven towns and cities also suffered a fall of new rental homes being available by 30.4% less, Wakefield 28.5%, Loughborough 28.3%, Colchester 26.5% and Cardiff 25.9%.
The capital had a 16.4% drop of new rental 'homes' on the market in August against July's figure, whilst Manchester experienced a fall of 18.4% and Birmingham fell by 16%.
Dan Gandesha, CEO of the platform, 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. If September fails to pick up and there’s a shortage of available rental properties, rents could be pushed up. Hopefully for tenants, this won’t be the case.”
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