Increase in buy-to-let listings in Sheffield
The rental market rebounded at the end of last year with an 11.4 per cent increase in new buy-to-let properties being advertised, according to research by property crowdfunding platform Property Partner.
Following an unseasonably slow September, two-thirds (66.3 per cent) of the UK’s major towns and cities last month saw a positive growth for new listings of rental properties.
The study identified 89 UK towns and cities, analysing the number of new rental properties being advertised between October 1-28, and then comparing it to the same period in September.
Sheffield saw an increase from 130.43 per cent to 134.56 per cent in new rental listings.
Dan Gandesha, CEO of Property Partner, said: “October’s surge in new buy-to-let listings is reassuring. Instead of September heralding in a new era for depressed rental levels - as some predicted - it’s instead starting to look like the market was caught by a prolonged summer lull.
“A quarter of homes bought over the summer months were either BTL or second homes, according to the HMRC, and this new rental stock is now finally hitting the market.
“But landlords have had to grin and bear a barrage of bad news - a hike in stamp duty, cuts in mortgage interest tax relief from next year, and tougher lending criteria. Profits have shrivelled especially in the South East, and a recent forecast by a leading high street agent of rents across the UK rising faster than house prices over the next five years, is hardly surprising.
“Many traditional landlords though will be feeling the pinch and perhaps doubting if it’s worth the hassle, particularly in the South East. If significant numbers of investors start selling up then rental supply could be negatively affected.
“By the end of January we should have a better indication of how buy-to-let investor confidence is faring after the uncertainty of last year.”