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Housing


6 July 2018

UNITED KINGDOM: Shortage of rental properties hikes rental prices

A new analysis shows a large number of landlords in Britain leaving the buy to let market which is causing an immediate shortage of available properties to rent. 

The shortage of rental properties is a nationwide issue, but particularly severe in the capital. London experienced a drop of 20% in the number of available rental properties over the past 12 months. Across the country, available properties have dropped by 12% leading to rent hikes, especially in wealthier areas in London.

In the London borough of Westminster, the average monthly rent is £5292, which is a 24% increase on June 2017. The number of available properties has fallen by 447 and dropped to 2673, according to the analysis. Kensington and Chelsea experienced an increase in rental prices of 14.7% over the past 12 months as well as a fall of 427 properties.

Properties in such areas are still highly sought after due to the falling supply and increasing demand, despite the premium rental prices. On average, a typical rental property stays on the market for 39 days.

In 2016, stamp duty changes were introduced meaning anyone purchasing a buy to let property must pay an extra 3% in stamp duty. Also, the Right to Rent legalisation was implemented nationally that same year, making it mandatory for landlords to check the immigration status of their tenants or they will face fines and even prison sentence.

 

How does this affect the client?

With the current situation, tenants are victims as they continue to face increasing competition for good quality properties and rising rents.

 

 

 

 

 

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