Buy-to-letOct 17 2016

More homes could be let than sold in 2017

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
More homes could be let than sold in 2017

Next year could be the first one since the 1930s when more homes are let than sold, according to Countrywide.

It comes as data from the Royal Institution of Chartered Surveyors showed the number of homes for sale was close to historic lows but demand was growing.

Earlier this year there was a rush among buy-to-let investors trying to snap up property before the 3 per cent stamp duty surcharge was introduced in April, boosting the number of properties available to rent.

Johnny Morris, research director at Countrywide said: "A different type of two speed rental market is emerging, with falling stock and growing demand driving rental growth in many northern cities at a higher rate than those in the south.  

“As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost to the rental market.

“Overall this is yet to stoke rental inflation, but September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts.

“On current trends, 2017 could be the first time since the 1930s that more homes are let than sold.”

According to Countrywide’s monthly lettings index, rental growth has slowed across Britain over the past year, but price growth in northern cities has remained at a similar rate to recent months.

Of the 20 largest cities, the five which have seen the cost of a new let rise the fastest, are all in Northern England or Scotland.

Manchester has seen the highest growth, with the rents of new lets rising 7.1 per cent over the last year, faster than anywhere else in the country.

Meanwhile Oxford, Cambridge and London were among the cities with the largest slowdowns in growth, with rents only rising by as much as 1.8 per cent.

London has the highest average monthly rent at £1,313 a month, followed by Brighton at £1,266 a month.