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Buy to Let

13% jump in number of properties to let

paulajohn
Written By:
Posted:
30/10/2013
Updated:
30/10/2013

The number of homes available to rent in the private sector is growing strongly, according to Experian.

The information service’s latest Quarterly Property Index has revealed that the number of properties listed as being ‘to let’ in the UK grew by 13% in the third quarter of 2013 compared to the same period last year.Over the past three years the number of rental properties as soared by 42%.

The number of homes put up for sale increased by 7% in Q3, and by 10% over three years.

The biggest increase in the number of homes put on the market for sale was dominated by more expensive properties of £500,000+, up 13% in the third quarter of 2013 compared to the same period last year. Most of these homes were in London (33%) and the South East (20%).

The number of more affordable homes for sale (those priced at less than £100,000) increased at a slower rate – up 7% during the same period.

Scotland reversed the national trend, with fewer properties being listed ‘to let’ over the past year. The number of properties put up for sale increased by 16% inbothe Scotland and Wales over the year. Scotland was one of the cheapest places to buy a home in the UK, with the second largest number of properties for sale under £100,000.

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London and London’s Outer Metropolitan region were the only areas in the UK to see stagnation in the ¬sale market, with the number of total available properties falling by 1% and 2% respectively year-on-year. The number of homes to rent increased most in these areas – up 20% and 29%.

The North East also experienced a high increase in rental properties listed – up by 21%.

Jonathan Westley, managing director of consumer information services at Experian UK & Ireland, said:

“Significant growth in the rental market could be a sign of the ongoing struggle to get onto the home ownership ladder, but it is also consistent with the pickup in ‘buy-to-let’ activity over the past year. With that in mind, the continuing increase of properties for sale at the top end of the market may be driven by interest from both buy-to-let investors, as well as foreign investors.

“Our analysis suggests greater choice for first time buyers, so it will be interesting to see what our data reveals in the coming months as the Government’s Help to Buy scheme gets going. As we await the impact on the property market, this insight is vital for lenders wanting to understand better the pressures or changes impacting their customers.”