Properties available for rent falls sharply in March with rents going up
The impact of tax changes including the 3% stamp duty levy on 2nd properties and future tax changes where landlords will no longer be able to claim mortgage interest against tax bills is begin to impact the market with many landlords pulling out of the market. This has resulted in number of properties available for rent to reduce according to Association of Residential Letting Agents (ARLA).
The number of properties managed by each branch is now 169 compared to 192 a year ago down 12%. Number of tenants looking for a property to rent is also down with the average branch having 33 potential tenants registered compared to 37 in February.
Rent costs rose in March for a third of tenants and three in five ARLA members fear they will increase further as a result of the changes.
“We don’t expect falling supply to stop here – the recent stamp duty changes are very likely to cause supply to decrease even further, as landlords withdraw from the market” says David Cox, the association’s managing director.