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10% Slump in Number of Buy To Let Homes For Renters

by guildy | 30 Jun 2017 | Investing in a Property (England), Investing in a Property (Wales), News | 4 comments

10% slump in number of buy to let homes for renters

The number of buy to let homes on the market to rent has slumped by more than 10% in a year, according to new data.

Only the North East has seen an increase in homes available for private rent – and most other regions saw an above average reduction in housing stock.

In the North-East, renters saw the supply of private rentals rise by a third.

Research by home.co.uk suggests the anomaly dates to home prices collapsing in the region after the credit crunch.

“This regional property market has stagnated ever since values plunged after the credit crunch and many vendors resorted to letting out their properties rather than sell at a loss,” says the report.

Seven out of 11 UK regions saw a fall in rental homes to rent more than the UK-wide average including:

  • -24.6% in the East Midlands
  • -20.8% in the South East
  • -16.7% in the West Midlands
  • -11.9% in East Anglia

The research suggests three factors are impacting the number of homes for private rental:

  • Changes in the way landlord rental profits are taxed introduced from April 2017
  • An increased administrative burden for licensing buy to lets and shared houses in many areas
  • The 2016 stamp duty surcharge making homes to rent more expensive to buy for landlords

Home.co.uk director Doug Shephard said:

“It is ironic that the government’s justification for tax changes in the private rental sector was to ‘level the playing field’ for wannabe homeowners. The result of this barrage of red tape and taxation, at both local and national government levels, has meant that the supply of rental properties has fallen behind demand in most regions thereby driving up rents.

“Record low mortgage interest rates have driven unprecedented landlord investment over recent years. Simply put, those already with significant home equity have been able to come up with deposits for properties intended to let while aspiring homeowners are as cash-strapped as ever as they pay out huge sums in rent.”

4 Comments

  1. BARRY FITZPATRICK
    BARRY FITZPATRICK on 02/07/2017 at 4:04 pm

    “………..aspiring homeowners are as cash-strapped as ever as they pay out huge sums in rent.”

    And rent are higher because of the ever increasing levels of taxation and regulation.

    • Deltic 21
      Deltic 21 on 02/07/2017 at 7:18 pm

      The government were utterly idiotic to even consider this move as the results were obvious from Day 1 of the announcement. Either they intended to ruin the rental market, in which case they are morally reprehensible and the cause of unnecessary homelessness, or they really were so thick they couldn’t see the outcomes. Either way, they are to blame and deserve every bit of bad publicity the new taxes generate.

      • BARRY FITZPATRICK
        BARRY FITZPATRICK on 02/07/2017 at 7:31 pm

        No they want to make it easier for their build-to-rent donors oops! corporations who need higher margins, and fewer competitors.

  2. Spondilicioustreasurehunter
    Spondilicioustreasurehunter on 03/07/2017 at 9:33 am

    The current and previous Prime Minister have provided very poor fiscal policies and leadership. They have been pandering for support by coming up with knee jerk populist proposals. These proposals frequently are aimed/relate to the SE England.

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