Small new-build properties are “flooding” the rental market

The rental market is experience a huge surge in the availability of new-build flats and maisonettes, according to the Association of Residential Letting Agents (ARLA).

Just over 43 per cent of UK agents say they are seeing an increase in this type of property coming on to the market because it cannot be sold.

Ian Potter, Managing Director, ARLA said: “New build flats and maisonettes are often a very popular choice for landlords investing in a buy-to-let property, particularly in large cities. The low maintenance costs and perceived demand from young professionals are key considerations for many landlords. Because of the saturated sales market in many parts of the UK, we are seeing this kind of smaller new build property flood on to the rental market.”

Meanwhile, UK tenants are now paying more rent than ever, according to HomeLet, with the average cost of renting a home now up to £806 a month which is the first time £800 has been passed. The company’s August figures show the UK’s average rental amount increased by 2.1% over the previous month.

Around the country, the South West saw the largest annual decrease with average rents dropping by 3.5% to £753 a month. The North East also saw its third consecutive annual decrease after dropping by 3.3% to £524 a month.

Ian Fraser, HomeLet’s Managing Director, said: “The average age of the UK tenant has decreased over the past three years to 32. This is contrary to the average age of a first time buyer that has increased to 37 which could suggest renting a home is the only option for those would-be first time home owners. In addition, data from this month’s report shows fewer of the tenants we referenced were previously homeowners, and an increased percentage of them previously rented another home. This could be further proof that renting has become a way of life for many, as they remain in rented accommodation for longer.”

Article courtesy of The Independent

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