The buy to let rush in the UK ahead of stamp duty changes in April boosted rental supply with London seeing the biggest increase, a new analysis report shows.
The rental market received a boost of 8% more new properties advertised to rent in the second quarter of the year compared to the same quarter in 2015, according to the data from property portal Rightmove.
The majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking rental price to just under £2,000 per month.
Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way.
The data also shows that rental enquiries were up 2% in the second quarter 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of a Brexit impact.
The supply boost failed to stop rents rising 2.8% in the second quarter outside London in England and Wales, though this is only 0.1% higher than the rise in the second quarter of 2015. The East of England’s year on year increase of 5% was the highest of all regions, while the South East saw rents increase the most over the quarter, up by 5.1%.
London saw the biggest increase in supply this quarter compared to any other region with growth of 22%, resulting in a fall in average asking rents by 1.1% to just under £2,000 per month.
‘The big spike in March transactions resulting from a large number of investors beating the more punitive stamp duty tax deadline has created a rental supply boost which is good news for prospective tenants actively looking for a new place to live,’ said Rightmove’s head of lettings Sam Mitchell.