- Number of rental properties managed per branch rose month-on-month from March, but is down overall from April 2015
- Rent costs expected to rise
- Landlords selling up BTL properties following stamp duty deadline on 1st April
Supply of rental stock available
The number of rental properties managed per branch increased by eight per cent in April to the highest level this year: The jump from March this year follows a rush from buy to let landlords pushing to complete sales ahead of the April stamp duty increase deadline
But supply still stands at five per cent lower than in April last year and continues to fall year on year. In April 2015, the average number of properties managed per branch was 193, this year it stands at 183
Demand for rental properties
Demand is also falling year on year: In April, the number of prospective tenants per branch was 34, up from 33 the previous month and down from 36 April of last year
Rent costs
Rent costs expected to rise, following buy-to-let stamp duty rise: Two-thirds (66%) of ARLA agents predicted that the stamp duty reforms will push rent costs up for tenants down the line
Landlords selling up BTL properties
ARLA agents reported an increase in the number of landlords selling their BTL properties: An average of four, up from three in March, pulling out of the market, showing an increase for the first time in a year
David Cox managing director, Association of Residential Letting Agents (ARLA) said: “It’s likely that this increase in supply is only temporary. At the end of April we saw a flurry of landlords seizing the last few moments before the stamp duty rise to complete sales, triggering an increase in the supply of empty rental homes to be filled this month. However, we expect that fewer investors will be taking on buy-to-let properties over the next six months, following the price hikes, meaning that once these properties are filled we’ll see supply nose-dive once again.”
Source: http://www.arla.co.uk