Interest rate cut boosts rental stock availability

Interest rate cut boosts rental stock availability

0:01 AM, 24th September 2024, About a month ago

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It’s not only homeowners and sellers feeling a sense of relief following the recent interest rate cut, but tenants have also benefited from a big jump in rental property availability.

That’s according to an analysis from Zero Deposit of 15 major UK cities, focusing on the total number of homes available and those newly listed within 30 days of the base rate reduction.

It found a notable surge in rental properties across all major cities – Edinburgh, for example, saw available rental home numbers rocket by 435 homes or 300% in just 30 days.

Glasgow saw a similar trend, with a 207% increase in new listings.

Consider exiting the sector

The firm’s chief executive, Sam Reynolds, said: “For almost four years, landlords across the UK have had to contend with far higher interest rates than they’ve become accustomed to, not to mention the challenges that this brings, and we know from a recent survey from the Royal Institution of Chartered Surveyors that this has caused many to increasingly consider exiting the sector.

“However, it certainly seems as though the first base rate cut in over four years has helped to steady the ship and spur a substantial increase in the number of rental homes reaching the market.

“This is, of course, great news for tenants, who stand to benefit from a greater level of rental market stock across our major cities.”

He adds: “Of course, with our new Labour government stating early that inheritance tax and capital gains tax could both feature heavily in what is expected to be a ‘painful’ October budget, this increasing market level of rental market sentiment could be somewhat short-lived.”

Cities experiencing big growth

Other cities experiencing big growth include Bradford (+137%), Bristol (+135%), Brighton (+130%), Manchester (+119%), Cardiff (+119%) and Sheffield (+109%).

In Leeds, where growth in rental home stock has been most measured, saw 576 new rental homes reaching the market.

That’s a 45% increase on previous stock levels and equates to 31% of all current market stock.


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