Lockdown rental stock shortage will see rents and deposits climb

Research by rental deposit replacement scheme, Ome, has highlighted how a lockdown reduction in rental stock entering the market could result in higher rental and deposit costs for UK tenants.

Ome investigated the percentage of buy to let mortgage loans approved over the last five years as a percentage of all loans. The figures from the Financial Conduct Authority show that the number of landlords entering the market with new stock has slowly declined every year since 2015 with an average annual drop of -1%.

At the same time, the value of the buy to let market has also diminished at an average annual rate of -1% a year, now worth £35,661m compared to £37,424m in 2015.

Despite a declining level of stock entering the market, there has been growing demand which has seen the average UK rent climb by an annual average of 4% each year since 2015, now at £743 a month compared to £627 in 2015. The average cost of a rental deposit has also increased at an average rate of 3% each year over the last five years.

A similar increase this year would see the average rent hit £776, while the average deposit would reach almost £900 despite the recently introduced five week deposit cap. However, Ome predicts that any lasting reduction in rental stock due to the current pandemic could result in a much larger increase in cost for UK tenants in the long term.

United Kingdom
2015
2016
2017
2018
2019
Average Annual change
Buy to let (% of gross advances)
16.81
16.04
13.43
13.02
12.96
change
-0.76%
-2.62%
-0.40%
-0.07%
-1%
Buy to Let VALUE – £millions
37,424
40,129
35,182
35,731
35,661
change
7.2%
-12.3%
1.6%
-0.2%
-1%
Average rent
£627
£643
£656
£677
£743
change
2.6%
1.9%
3.2%
9.8%
4%
Average Deposit
£758
£766
£777
£790
£858
Change
1.1%
1.4%
1.7%
8.6%
3%
Sources
Lending statistics – Buy to Let
Average private rent statistics
England
Wales
Scotland
Northern Ireland

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Rightmove logo
Breaking News

Rightmove’s Weekly Mortgage Tracker – 01/07/25

Average rates for 2-year and 5-year fixed-rate mortgages   Term Average rate Weekly change Yearly change 2-year fixed 4.57% -0.05% -0.83% 5-year fixed 4.55% -0.04% -0.45%   Lowest rates for 2-year and 5-year fixed-rate mortgages   Term Lowest rate Weekly change Yearly change 2-year fixed 3.69% -0.13% -0.98% 5-year fixed 3.87% -0.01% -0.36%   Average…
Read More
Breaking News

Housing Insight Report Covering May 2025

Sales On average, there were around 11.5 homes placed for sale per member branch in May 2025. Lettings The average void period reported by member agents increased to just over three weeks in May 2025. We are seeing an average of 37% of housing transactions taking longer than 17 weeks to complete. The timescales are…
Read More
Breaking News

Rental Market Hotspots Drive National Growth

New analysis from FCC Paragon reveals modest national growth in rental demand across England in Q2 2025, up by 1.2% to 29.4%. However, this overall increase masks significant regional variation, with several counties experiencing substantial quarterly surges that are driving the market forward. The research shows that rental demand across England strengthened in Q2, up 1.2%…
Read More
Breaking News

Nationwide House Price Index for June 2025 – Thoughts from the Industry

Nationwide House Price Index for June 2025 shows House prices fell by -0.8% between May and June of this year. On an annual basis, the average house price increased by 2.1% although this rate of growth had slowed from 3.5% the previous month. As a result, the average UK house price now sits at £271,619.…
Read More
Breaking News

Clarity still needed on key areas in Renters’ Rights Bill

Ahead of Report Stage of the Renters’ Rights Bill in the House of Lords later today, 1 July 2025, Propertymark is urging the UK Government and Peers to amendment Bill, so it is fit for purpose. There remain long-standing concerns about the capacity and capability of the Courts, with the time from claim to hearing…
Read More
Cozy Pet Cat Tree Grey
Breaking News

Pet deposits only option following UK Government U-turn on Renters’ Rights Bill

Ahead of Report Stage of the Renters’ Rights Bill in the House of Lords which kicks off later today, Tuesday 1 July 2025, Propertymark is urging Peers to support an amendment that would allow for an additional pet deposit now that the UK Government has tabled amendments to remove pet insurance requirements. Since the introduction…
Read More