After a slowdown in the UK lettings market in May, the latest data from the Agency Express Property Activity Index shows month-on-month growth in both properties to let and let properties over June.
Across the UK, the number of properties let increased significantly over the past month, by 9.6%, while new listings rose by 1.8%.
Although Agency Express did witness some buoyancy across the market, historical data from the Property Activity Index shows that supply has dropped annually.
Lettings Market Sees Month-on-Month Growth
Recent reports from the Council of Mortgage Lenders show that landlords borrowed £2.6 billion in May, down by 4% over the year.
Despite this, seven of the 12 UK regions included in the Property Activity Index experienced increases in new listings to let and ten recorded growth in the number of let properties in June.
Some of the regions that recorded the greatest increases include:
Properties to let
- North East – 26.5%
- East Midlands – 13.4%
- London – 10.3%
- Yorkshire and the Humber – 8.3%
- South East – 5.2%
Let properties
- London – 24.2%
- South West – 19.2%
- Yorkshire and the Humber – 18.6%
- Wales – 15.1%
- East Midlands – 14.6%
June’s top performing region was the North East, which saw record figures for the month. The number of new listings to let rose by 16.5%, while the amount of let properties was up by 13%.
The greatest declines were seen in central England, with properties to let falling for a second consecutive month, down by 5.9%. The number of let properties also dropped, by 1.6%. However, looking over the past three months, figures for new listings remained resilient, up by 3.5%.
If you are considering a further investment in the private rental sector, it may be best to avoid the areas where the number of properties to let is rising, as supply levels will be high. However, look to the areas where the amount of let properties is up, as demand from tenants is strong in these locations.