15 May 2018
Lower Stamp Duty In The North Sees Rental Stock Levels Rise by 19%
- Average rents in the North fell -0.3% in April compared with the same period last year – the first year-on-year fall for 4 years
- Meanwhile rental growth accelerated in the South to 2.2% in April 2018, buoyed on by increases in London (2.2%) and the East (3.6%)
- The average cost of a new let reached £953 pcm in Great Britain in April, 1.9% up on the same period last year
- Average rents in the South rose to £1,372 pcm in April, 2.2 times more than the average rent in the North (£622 pcm), although this largely reflects property price differences
The Hamptons International Monthly Lettings Index (formerly the Countrywide Lettings Index) shows that in April the average cost of a new let in the North fell for the first time since 2014. Rents in the North fell -0.3% in April 2018 compared to the same period last year, meanwhile rental growth accelerated in the south to 2.2%. (table 1).
From the table below, we can also see that stock levels rose in the North by 19% year on year, whilst they reduced by -16% in the south. Given that the number of homes available to rent in the North has increased so significantly, the small reduction in rental income is relatively low.
TABLE1: North / South Rents & Stock Levels:
Commenting Aneisha Beveridge, Research Analyst at Hamptons International, said:
“Low stock levels in the South continue to drive rental growth as tenants compete for fewer available homes. Since April 2016, the month the stamp duty surcharge was introduced for second homeowners, landlords across Great Britain have sold 88,000 more homes than they bought. But landlords are finding new ways to maximise their returns by purchasing properties elsewhere, particularly further North in search of lower stamp duty bills and higher yields….”