Is the market being flooded with rental properties
It seems many landlords snapped up properties ahead of Aprils stamp duty deadline. We are now seeing those properties come on to the letting market. However will the rush of properties really alter the supply and demand dynamic that current prevails within the letting industry.
Rightmove has stated that there has been an increase of just over eleven percent in rental properties. With certain parts of the country seeing increases of almost fifty percent.
London has experienced an increase of just under ten percent.
The two reports I read seemed to have mixed results with one showing properties purchased and the other showing rental properties available.
As many landlords may take some time to renovate their newly-acquired houses, before offering them for rent, the market might not be as flooded with rental properties as the research initial claims.
From my experience every landlord is different when it comes to the standard of the property they wish to let, some let immediately with no development of the property others like to install new kitchens and bathrooms prior to renting.
However, at some point all these properties will be ready and available for rent. Will this mean a fall in the cost of renting? Are rents in real terms already starting to fall?
With no sign of property prices taking a massive dive, surely the demand for properties will continue to soar?
Will the balance of supply and demand really shift towards the tenant or will the demand continue to outstrip supply and benefit the landlord?
Long term this glut of rental properties will swallowed up and normal service will resume.
What are your thoughts? Is it a lot of hype over nothing?