More choice for tenants as rental supply rises across much of UK

Nearly six in ten UK towns and cities saw a rise in new buy-to-let properties coming on to the rental market in November, but the dip in London continued.

Crowdfunding platform Property Partner analysed new rental listings on Rightmove in November, and recorded a second consecutive month of positive growth with an average 6.8% increase.

However, London saw a 1.2% drop in new listings following a 35% fall in October.

Bristol experienced the biggest rise with 162.7% more new rental listings, growing from 1,329 new rental properties in October to 3,492 in November.

Three other cities also recorded a triple-digit boost in new buy-to-let properties coming on to the market. Southampton, Portsmouth and Huddersfield saw supply rocket by 108.2%, 102.8% and 101% respectively.

The ten UK towns and cities that saw the biggest increases in new rental supply in November are below:

Town/CityAreaNovember vs October
BristolSouth West162.7%
SouthamptonSouth East108.2%
HuddersfieldWest Yorkshire101%
BathSouth West96.1%
YorkYorkshire and the Humber91.6%
CoventryWest Midlands77.2%
ExeterSouth West71.4%
PlymouthSouth West54.5%

But it was not all good news, with significant falls in the number of new buy-to-let properties in towns and cities in the north and east midlands. Derby suffered a drop of more than 33% with only 123 new rentals coming on to the market in November:

Town/CityAreaNovember vs October
DerbyEast Midlands-33.4%
RochdaleNorth West-27.6%
SheffieldYorkshire and the Humber-24.1%
LeicesterEast Midlands-22.8%
Stockton-On-TeesNorth East-22.7%
LancasterNorth West-20.9%
SaleNorth West-20.7%
SouthportNorth West-17.5%
DarlingtonNorth East-16.8%

Similarly, 18 London’s boroughs saw falls in new rentals. Kingston upon Thames experienced a 12% drop with Barking & Dagenham down 10.7% and Kensington & Chelsea falling 10.4%:

BoroughsAreaNovember vs October
Kingston upon ThamesSouth West-12.3%
Barking & DagenhamEast-10.7%
Kensington & ChelseaInner-10.4%
MertonSouth West-10.4%
RedbridgeNorth East-10.2%
Richmond upon ThamesSouth West-8.3%
Waltham ForestNorth East-8.2%
Tower HamletsEast-4.8%
GreenwichSouth East-4.6%
BromleyNorth East-4.3%
WandsworthSouth West-4.2%
SuttonSouth West-2.4%
BexleySouth East-1%
BrentNorth West1%
LewishamSouth East2.3%
Hammersmith & FulhamWest2.4%
City of WestminsterCentral2.5%
HarrowNorth West3.4%

Dan Gandesha, chief executive of Property Partner, said: “It has been another encouraging month for prospective tenants on the hunt for new rental properties. Both October and November saw consecutive increases in the supply of new listings, somewhat silencing any murmurings that we were in for an era of depressed rental supply. In some towns and cities it even appears to be a renters’ market.

“While many aspire to own, the demand for rental accommodation is set to grow, with increasing numbers choosing to rent due to a lack of affordable housing for potential buyers.

“With the private rental sector almost doubling in the past decade, and one in five households in England now in private rented accommodation, it’s vital to ensure good-quality homes which are professionally managed.

“But the flipside is that many landlords are feeling the financial squeeze due to recent tax changes and stricter lending criteria.

“Imminent cuts in mortgage interest tax relief may just make it impossible to make ends meet, particularly in London and the South-East, resulting in many buy-to-lets being sold and a knock-on effect of reduced rental supply in the future.”

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Written by: Houseladder