It’s not just homeowners and sellers who have taken advantage of the recent interest rate cut.
The level of rental stock available to tenants across major British cities has increased “notably” in the 30 days following the first base rate cut since 2020, research suggests.
Zero Deposit analysed available rental stock across 15 major cities in Britain, looking at the total number of rentals listed on the market in the 30 days since interest rates were cut from 5.25% to 5% by the Bank of England in August.
The research shows that across all major cities, there has been a significant increase in the number of homes being listed to rent.
In Edinburgh, 435 homes have entered the rental market in the last 30 days, equating to 75% of all current stock and marking a 300% increase when compared to total stock levels prior to the last base rate decision.
Neighbouring Glasgow has also seen a sharp increase, with a 207% jump seeing new rental homes listed on the market account for 67% of all current market stock.
The influx of new rental market stock has also seen available stock levels increase by more than 100% across Bradford (+137%), Bristol (+135%), Brighton (+130%), Manchester (+119%), Cardiff (+119%) and Sheffield (+109%).
Even in Leeds, where this increase in stock levels has been most measured, the 576 new rental homes to have reached the market in the last 30 days mark a 45% increase on previous stock levels and equate to 31% of all current market stock.
Sam Reynolds, chief executive of Zero Deposit, 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.
“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.”
