Number of rental properties listed to let rises five time faster than homes …

By
Lee Boyce

PUBLISHED:

15:35 GMT, 13 August 2013

|

UPDATED:

16:01 GMT, 13 August 2013

The number of properties being listed to let grew by 11.4 per cent in the second quarter compared to a year ago, far outrunning the growth in the number of homes for sale, according to new figures.

The rise in the number of new homes available to rent over the year grew at five times the rate of those coming up for sale between in April and June, according to information services company Experian.

The rental market was led by London, which saw a 26.4 per cent increase in the number of properties available to let compared to a year ago , while Wales and the East were the only areas to see decreases.

Familiar sight: The number of properties to let soared between April and June

In contrast, there was a small increase of just 2.3 per cent in the number of fresh house sellers nationwide. In the capital, the number was up two per cent.

Buy-to-let lending conditions have thawed in recent months with lower rates being driven by cheap money from the Funding for Lending scheme. Figures from the Council of Mortgage Lenders last week showed 40,000 buy-to-let mortgages worth £5.1billion were issued between April and July – the highest number, and value, of loans since the third quarter of 2008.

And an increasing number of lenders are also entering the buy-to-let fray. For example, Shawbrook Bank today launched two buy-to-let mortgage through selected brokers. The deals are available up to a maximum loan-to-value of 75 per cent and are available as two or three-year interest-only mortgages.

According to a recent survey by the mortgage provider Buy to Let Business, over 90 per cent of brokers say they felt extremely or relatively confident that the market would grow over the next twelve months.

At the same time, rents continue to increase. The current average monthly UK rent is £737 according to LSL Property Services – three years ago this figure stood at £656.

Jonathan Westley, managing director of
consumer information services at Experian, said: ‘In some regions, the
housing market remains challenging for first time buyers, particularly
in London, which is constraining activity levels for lower value
properties and keeping a lid on prices in many areas.

‘This is reflected
in the surge in rental properties on the market.’

Flats were by far the most popular property type to rent, accounting for 46.9 per cent of all rental properties, two fifths of which can be found in London – 74 per cent of properties in the capital’s letting market are listed as apartments.

However, terraced houses saw the biggest increase nationwide up by 16.2 per cent annually.

Houses listed for sale over £500k grew by 14% in three months

The analysis by Experian gives an insight into the housing market to enable lenders to understand how peoples’ financial needs are changing.

It found the number of homes coming onto the market for under £250,000 fell by 0.4 per cent.

In contrast, there were significant increases at the higher end. Properties listed between £250,001 to £500,000 were up by four per cent, while those worth £500,001 were up by 14 per cent.

Properties priced under £100,000 and £100,001-£250,000 in the North West fell by 9.9 per cent and 8.3 per cent respectively.

The region also saw the biggest fall in overall properties for sale, down 6.8 per cent, but saw its rental market thrive as 7.8 per cent more homes for rent appeared on the market.

Detached houses are the most frequent house type listed for sale across the UK, with a total of 55,711 detached properties for sale in the second quarter of 2013 compared to 52,165 in the same period last year, an increase of 6.8 per cent.

Three bedroom houses were the most common size of home on the resale market, accounting for 38.5 per cent of all new listings.

The comments below have not been moderated.

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It is noticable that anyone bearing bad news on this subject even people like me with 11 years experience as a landlord get a mass of thumbs down is this shooting the messanger or just plain blinkered.
I noticed the comment on ‘The Pines’ near Hull. Now that is a superb development.
When I purchased my properties I purchased on a PE ratio like any other business. I did not even think about capital gain just the yield. The Tech stock crash and the ensuing property boom has changed peoples outlook on Housing and commercial property. Even so when you add in the money spent on maintenance certafication and othe expences the Gross yield is Hammered. I never stop being amaized at just how much I spend on upkeep and absorbing bad debt.

–

Graham
,

York, United Kingdom,
16/8/2013 16:06

– wageslavedave , hull, 15/8/2013 11:07. Minimum wage 6.31 times 40 hours per week x 52 weeks = Roughly £13K x 3.5 salary = £46,000. times that by the 8 times you think they are overpriced = £368,000. Please anyone look on Rightmove at what £370K buys you in Hull. So in your opinion a single person on the minimum wage should be able to go out and buy a luxury 5 bedroom detached house with double garage as their first home? I will take the one in The Pines at £359,950. Are you completely bonkers or just awful at maths?

–

U make ur own luck
,

In this world,
16/8/2013 11:39

Yawn….same old, same old.

–

Realist
,

Cambridge, United Kingdom,
15/8/2013 20:05

buy to letters should be taxed heavily on any more than three properties.House prices are still EIGHT times overvalued. liblabcon are doing their best to stop prices falling using qe and artificially low interest rates to stop their masters(the bankers)being upset,
LIBLABCON
None of the above.

–

wageslavedave
,

hull,
15/8/2013 11:07

– Rigsby , Adopt a Crashist, United Kingdom, 15/8/2013 06:38. Couldn’t have put it better (othe necessary simpler) myself. Some people just don’t understand that these portfolios were all ready successful before the base dropped below 5.5% You also need to add that investors who owned property prior to the last peak (not the current one) in 2007 tended to have had the option on some of their portfolio to remain on base + 1-2% which long term will be unbeatable ever again. Good luck with the crashist adoption by the way, I hear they are very prone to making up elaborate stories predictions, tantrums rants as those that have something they don’t those in authority and throwing toys all over the shop on a daily basis- you are a braver man than I.

–

U make ur own luck
,

In this world,
15/8/2013 11:00

I suppose this is going to be the next bubble. I wonder what will happen when it bursts, Most young people complain about the price of houses but refuse to save for a deposit and to want a four bed detached on interest only rather than a three bed semi on repayment. The I want it now syndrome. So even if the bubble bursts they will not be in the queue to buy the typical rental property.. Most houses that are rented are not in the best of location so again not too many private buyers. That leaves reducing rents to attract new tenants and tenants only staying for the period of the Assure Shorthold Agreement (six months) Regular empty periods will follow. Lost income…Then we have the new C/tax rules. Full council tax on empty properties after one month??. With yields ranging from say 6% to a maximum of 12% gross. and regular smartening up required due to short lets. The improvement in the countries housing stock will stop. Landlords are not charities. I will have to let unfurnished

–

Graham
,

York, United Kingdom,
15/8/2013 09:09

I think we should all toast buy to let landlords, they give people shelter taking all the risk and maintenance on themselves! The government certainly don’t want the hassle ! So BTL landlords I salute you! Good job and you deserve any reward owed to you! Ignore the negative comments, they are just annoyed about handing over 3 quarters of their taxed income to someone successful ! There’s nothing lower in society then whining renters! Funny how polish people can get three jobs and buy a house and look after their family, but many Brits can’t !

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Mr Brown
,

Alderley,
15/8/2013 07:24

Rigsby , Adopt a Crashist, United Kingdom, 14/8/2013 16:4@@@@@@ You will have to change your name to ‘lend a tenner from a crashist’ when rents start to fall and IR’s go up – Remember Joseph Kennedy!
– Phil , Salisbury, 14/8/2013 17:44 @ Myself, along with any other long term investor built our portfolios on 4-5% base rate – the last 5yrs have been a nice bonus and nothing more. Therefore I wouldn’t get that excited. As for falling rents, I’ll make a pledge to post when I offer my first ever rent reduction in 20years and counting.

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Rigsby
,

Adopt a Crashist, United Kingdom,
15/8/2013 06:38

Phil, it is so easy to push your buttons ……. you never fail to disappoint me.

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Tommy
,

Orpington, United Kingdom,
15/8/2013 00:41

this is bad news….. as more and more properties are available to let, us poor landlords will need to lower the rent (over supply), the only winners will be the out right owners lucky Im one…..phew – not so lucky if you have a loan.

–

simon
,

london,
14/8/2013 19:11

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Number of rental properties listed to let rises five time faster than homes …

Houses listed for sale over £500k grew by 14% in three months

Houses listed for sale over £500k grew by 14% in three months

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