RENTAL SUPPLY DIPS AS PREDICTED- GREAT NEWS FOR INVESTORS
Most on the ball letting agents predicted that there would be a drop in rental property supply in May following the stamp duty changes in April. This caused a substantial swell of properties available on the market at that time because landlords were rushing to get property purchases completed before having to May a massive tax bill.
This has now been confirmed by the findings of Property Partner- apparently in the UK as a whole there was a fall in stock levels by 15.4% in May.
The demand for property by tenants, of course, hasn't changed which means that landlords are currently able to charge above average rents because tenants don't have much of a choice at the moment.
Oulsnam Lettings are predicting that landlords will now use inflated rent levels to claw back the extra amount they have paid in stamp duty. This should mean we see rents increasing from now onwards and that could be fairly dramatically with the above factors in mind.
All in all, it actually seems like now is an intelligent time to invest in a buy to let property because of several reasons: There are more properties available on the market to choose from (because there isn't such a rush for landlords to buy as pre April) which means you should also get a better deal. Further to this it seems because there is a reduced supply you will probably also be able to ask for a premium rent which can work to counter-act the extra stamp duty paid.
If you are thinking of letting your property then please contact Laura Fiddes-Baron on 0121 445 7410 or email email@example.com to discuss the next steps.