12% jump in number of available rental properties leads to slowest annual rate of increase since 2014

Rightmove logo
  • Over-hang of last year’s buy-to-let surge leads to more choice for tenants and slower annual rate of increase in rents:
    • Number of available rental properties on Rightmove up 12% compared to the same period last year
    • Annual asking rent growth of 1.8% is the lowest since Q4 2014, and less than half the annual growth of 3.9% recorded a year ago in Q1 2016
  • Uplift in available properties means it is taking 10% longer for letting agents to secure suitable tenants than this time last year, and almost 20% longer in London

More property options for tenants has led to a slower pace of rental growth so far in 2017.  For the first time since 2014 asking rents outside London fell in the first quarter of the year, down by 0.4% on the previous quarter. This has led to a modest annual increase of 1.8%, the lowest rate since Q4 2014 and less than half of the annual growth of 3.9% recorded a year ago.

New rental properties coming to market have been increasing since the rush of buy-to-let purchases ahead of the additional stamp duty that came in last April. The result is a 12% increase in available properties for tenants to choose from compared to the first quarter last year, meaning that letting agents need to work harder to secure suitable tenants for their landlords’ properties, to ensure any void periods are limited.

The time it takes to let a property has been calculated based on agents who have marked properties as let agreed on Rightmove.  Nationally, it’s taking 10% longer on average to secure tenants than the same period last year. The time has increased in all regions excep Wales, which has sped up by 5%.

In London, asking rents rose 1.5% compared to last quarter, but annually the price fell by 4.2%. Rental prices have been falling over the past year in London as stock has been increasing, so it’s not a surprise that it is the most affected region for the length of time to secure a tenant, with properties now taking 20% longer to let than this time last year.

Rightmove’s Head of Lettings Sam Mitchell comments: “The supply boost following last year’s buy-to-let frenzy in the first few months of the year has continued through to 2017, introducing more competition in the market for letting agents trying to secure suitable tenants for their landlords’ properties.  This extra choice for tenants in many areas has inevitably led to properties taking longer to let than this time last year. However, agents are still reporting that well-priced properties in popular areas are letting quickly. The new tax changes that started to phase in from this month may also lead to some landlord’s selling off properties and the extra stamp duty on buy-to-lets may deter some landlords from expanding their portfolios, so now seems to be the right time for tenants who want to have more choice to look around. Agents’ properties need to stand out even more than before, so carefully considering how your property is presented is really important. Now might be the right time to encourage landlords to give the place a lick of paint or some new furniture to give them the edge to help secure the right tenant.”

 

Rightmove

UK Property news updates shared directly from Rightmove PLC - the country's leading property portal.

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More