Landlords hike rents to new record high

A drop in the number of rental properties has sent rent prices to record levels in its biggest jump since 2015, according to a report released on Friday.

The Rightmove rental tracker said average asking rents outside London have hit more than £800 per month for the first time after an 8.7% drop in the number of rental properties marked available and a 19.4% drop in London compared to this time last year.

Miles Shipside, Rightmove’s commercial director and housing market analyst, said: “The exit of more landlords from the buy-to-let market in recent years has been due to a raft of different factors, from the more onerous tax regime and more stringent borrowing criteria, to the higher stamp duty on second home purchases and extra legal obligations.”

The market has also been hit a drop in mortgage approvals for buy-to-let properties, with a 14% drop since the same period last year.

New buy-to-let mortgage approvals are down 53% compared to three years ago, when new stamp duty surcharges were placed on second homes.

“Although some of the shortfall in supply will be met by quality housing provided by Build to Rent schemes in the coming years, it’s likely stock shortages will remain in areas with a high concentration of renters. Given this backdrop and rents likely to rise, private landlords should try and look beyond the current challenges if they can and stay in the sector,” said Shipside.