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There is ‘significantly’ less rental stock in the buy to let sector, according to the latest rental index from Belvoir.
Belvoir’s rental index for the fourth quarter of 2017 found that the government’s regulatory assault on landlords is adversely affecting the private rental sector. Belvoir found that over 85 per cent of its franchisees’ offices were reporting that landlords were selling some properties. However, this has not yet turned into a big sell-off.
Rents in Q4 remained stable according to Belvoir. The North West saw the lowest rents at just £597 a month in comparison to £630 recorded in the North-East. The highest rents were found in the south-east at £1,046. In London, rents averaged at £1,431.
Meanwhile, in a separate survey conducted by the RLA, it was found that 69 per cent of the 3,300 landlords surveyed said that the decision to impose a 3 per cent Stamp Duty tax on the purchase of new homes was prohibiting their further investment. The same survey found that just 18 per cent of respondents have purchased at least one property in the last 12 months. This is down 9 per cent in comparison to the same point last year.
Belvoir chief executive Dorian Gonsalves said: ‘The largest number of properties being sold remains up to three per branch. Overall in 2017, a higher proportion of offices (15 per cent in Q2 and Q4) saw six to ten properties sold – a higher percentage than seen in the previous year. For some time Belvoir has been warning that government steps to reduce buy-to-let stock will not help tenants in the future, as it simply means that they have will nowhere to live.’
He continued: ‘Although we are still seeing landlords buying properties, the numbers are reduced. The big question is: how much of influence is the Government’s pressure on landlords having? In reality, although we are seeing slightly less demand from tenants than in the past, there is a lot less stock coming on to the market.’