Rental supply increased by 11.4% in October after dropping off in September, data from Property Partner shows.
Between September and October rental supply saw the greatest percentage increases in Swansea (210.89%), Newcastle upon Tyne (194.04%), Sheffield (134.56%) and Leicester (125.40%).
Dan Gandesha, chief executive of Property Partner, said: “After last month’s lower than expected figures, October’s surge in new buy-to-let listings is reassuring. Instead of September heralding in a new era for depressed rental levels – as some predicted – it’s instead starting to look like the market was caught by a prolonged summer lull.
“A quarter of homes bought over the summer months were either BTL or second homes, according to the HMRC, and this new rental stock is now finally hitting the market.
“But landlords have had to grin and bear a barrage of bad news – a hike in stamp duty, cuts in mortgage interest tax relief from next year, and tougher lending criteria. Profits have shrivelled especially in the South East, and a recent forecast by a leading high street agent of rents across the UK rising faster than house prices over the next five years, is hardly surprising.”
He added: “Many traditional landlords though will be feeling the pinch and perhaps doubting if it’s worth the hassle, particularly in the South East. If significant numbers of investors start selling up then rental supply could be negatively affected.
“By the New Year, we should have a better indication of how buy-to-let investor confidence is faring after the uncertainty of this year, but in the short term, October’s buoyant figures are encouraging.”