The rental market in the UK rebounded in October with an 11.4% increase in new buy-to-let properties being advertised compared to the previous month, according to the latest data from Property Partner.
New rental listings increases in two thirds of town and cities led by Swansea where there was a 210.9% rise compared to September while three other cities also saw triple digit increases up 194.04% in Newcastle, up by 134.56% in Sheffield and up 125.4% in Leicester.
The data from the property crowdfunding platform shows that overall 66.3% of major towns and cities saw positive growth for new listings of rental properties.
However, new rental stock in London was more subdued with buy-to-let listings down by 3% month on month in October following a steady increase of 1.4% in September.
Dan Gandesha, chief executive officer at Property Partner, said: "After last month’s lower than expected figures, 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."
He pointed out that a quarter of homes bought over the summer months were either buy-to-let or second homes, according to the latest data from HMRC and this new rental stock is now finally hitting the market.
But the future of the buy-to-let market is facing challenges, he explained, with landlords already seeing a 3% surcharge on stamp duty for buy-to-lets and cuts in mortgage interest tax relief due to start from next year along with tougher lending criteria from January 2017.
Gandesha added: "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 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 New Year, we should have a better indication of how buy-to-let investor confidence is faring after the uncertainty of this year, but in the short term, October’s buoyant figures are encouraging."
