UK rents follow supply’s upward trend
In an unusual economic twist, the supply of available UK rental property is rising, while rental values are heading higher at the same time, according to the latest figures.
A tracker report looking at figures from the second quarter of 2017 showed supply increasing by 7 per cent outside London and 8 per cent in the capital, with asking rents up by 2.8 per cent outside London but staying static within London.
Among the towns and cities with the largest concentrations of available properties in the private sector are Aberdeen, Bath, Birmingham, Cambridge, Cardiff, Leeds and Newcastle, states the report.
“Many thought that rental supply would constrict this year, as landlords sold up and looked to invest their money elsewhere, but clearly this isn’t happening yet. Perhaps landlords are re-mortgaging their buy to let properties instead, as they still feel it’s a better investment than looking to other industries,” said one property analyst.
“It could spell good news for tenants coming to the end of their lease as they might find there is slightly more choice than last year. Anyone hoping for a drop in prices due to the extra choice will be disappointed though as rents are following a very similar trend to previous years,” he added.