UK rentals up but not London

UK rentals up but not London

New rental listings increased by 6.8 percent across the UK in November - the second month in a row of positive growth according to a survey of Rightmove listings.

The research carried out by property crowdfunding platform Property Partner found nearly six in 10 UK towns and cities saw a rise in new buy-to-let properties coming onto the rental market, but there are wide differences between the regions

London suffered a further dip in new rental listings of 1.2 percent, following a 3 percent fall in October. The highest falls in London were in Kingston upon Thames (-12 percent) and Kensington and Chelsea (-10.4 percent).

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Overall Derby saw the largest decrease in lettings, seeing a 33 percent fall, with only 123 new rentals coming onto the market in November.

Bristol saw the highest increase at 162.7 percent followed by Southampton, Portsmouth and Huddersfield seeing rises of 108.2 percent, 102.8 percent and 101 percent respectively.

Dan Gandesha, chief executive of Property Partner, commented on the falls new rentals in the South East: "Many landlords are feeling the financial squeeze due to recent tax changes and stricter lending criteria," he said.

 "Imminent cuts in mortgage interest tax relief may just make it impossible to make ends meet, particularly in London and the South East, resulting in many buy-to-lets being sold and a knock-on effect of reduced rental supply in the future.”

However, Oliver Bailey, an IFA based in the Kingston upon Thames area, said that in his experience buy-to-let owners were not selling.

"The problem is that it is difficult for new buyers to get in," he said. "The existing buy-to-lets will stay. These owners can remortgage fairly easily out of their deals and get a new deal because they have stacks of equity."