Rental supply in UK increasing due to Buy to let rush

buy-to-let-risesThe rush of buy to let in the UK in advance of stamp duty changes in April improved the rental supply with London having the biggest increase. According to Rightmove data, the rental market received an increase of 8% with more new properties announced to rent in the second quarter of the year compared year on year. Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter. The rental enquiries were up 2% in the second quarter 2016 compared to last year, and up 1% in the two weeks after the referendum result compared to same two weeks in 2015 as there were no immediate impact in the market, the data shows.

Debbie Pennell, lettings director of Robinson-Jackson in London and Kent, says: “It will be easy to attribute any recent fluctuations in lettings to Brexit, but measuring results and performance this year will be especially hard. The new increased buy to let stamp duty charge combined with the stepped fall of mortgage interest tax equalizing is just as responsible for a pause in activity in the second quarter of 2016 as the referendum build up. There is still strong number of investors actively looking to purchase buy-to-let properties.”

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