Rental market activity cooled in June

The most recent Agency Express Property Activity Index reveals that there was a fall in the number of properties let during the last month.

This was due to a lack of supply restricting choice for would-be renters, according to the report.

Let Properties

In all, the percentage of properties ‘let’ slipped to stand at -1.9%, with historical records indicating that the figure for properties ‘let’ during June is currently at its lowest level for three years.

While these figures for properties ‘let’ fell during the month, new listings ‘to let’ did see a small rise of 0.9%. However, over a three-month rolling period, figures recorded across the country remain down. New listings are at -2.3% and properties ‘let’ at -4.9%.

This report seems consistent with the most recent one from the Council of Mortgage Lenders, which shows that less buy-to-let landlords are looking to add to their portfolios. Others are looking to exit the market altogether, due to the recent tax assault of buy-to-let investors.

Declines

Assessing performance across Britain, just 5 of the 12 regions covered by the Property Activity Index reported an increase in new listings ‘to let’, alongside those ‘let.’

The regions that recorded the smallest declines in properties ‘to let’ in this month’s index were:

• West Midlands – 7.5%
• Scotland – 4.5%
• Yorkshire and the Humberside – 4.2%
• Wales – 1.7%

In terms of properties ‘let by’ the smallest declines were seen in:

• Wales – 9.8%
• South West – 4.4%
• Central England – 1.1%
• North West – 1.1%

The largest declines in this month’s Property Activity Index were made in the North East. Here, new listings ‘to let’ fell to sit at -23.5% with new properties ‘ let’ standing at 26.1%.

Slow Moving

Stephen Watson, Managing Director of Agency Express, observed: ‘As we look back over historical data recorded by the Property Activity Index, we can see that June is usually a buoyant month for UK lettings. However, this year we have witnessed a slower moving market specifically in the number of properties ‘let’.’[1]

‘Moving in to July and August, if usual trends dictate we don’t anticipate any large increases in activity,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/uk-rental-market-slows-in-june