Buy-to-let landlords who have weathered the storm of the last eighteen months are now being rewarded with rising rents and a dramatic reduction in stock levels, new research has revealed.
As the so called 'accidental landlords' who flooded the rental market with homes start to return to the sales market, the stock of rental property available has plunged by 10% between September and October, following a 6% fall the previous month, bringing supply back to the level last seen almost a year ago, according to FindaProperty.com.
A seasonal surge in demand from students and graduates requiring lower-cost rental accommodation has also seen the volume of rental flats available drop by 12% over the month.
With competition amongst tenants seeking homes increasing, it means the recovery in rents seen since April has also continued, climbing by 0.1% in October to £830.
Meanwhile, the number of days properties are taking to let now stands at just 58 days compared to 71 days at the start of the year.
"Despite the fact that the economy remains uncertain and unemployment is still rising, the oversupply of rental properties is correcting itself almost as quickly as it occurred, and as long as the sales market continues to strengthen, this clearout of stock is likely to continue," said Michael O'Flynn, director at FindaProperty.com.
"Rents are on a clear road to recovery with six consecutive months of stable or rising prices. Provided the 'double dip' theory of a second fall in sale prices doesn't come to fruition, landlords could be set to enjoy a further recovery in rents over the coming months."
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