Surplus rental stock levels fall as tenant demand returns to the market

Emma Johnson
Authored by Emma Johnson
Posted: Monday, October 11, 2021 - 09:48

Research by nationwide buy-to-let specialist, Sequre Property Investment, suggests that the rental market across Britain’s major cities has bounced back, as available stock levels are now lower than prior to the pandemic.

Sequre Property Investment analysed the available rental stock levels across 21 major UK cities and found that at the end of Q4, 2019 before the pandemic struck, there were a total of 96,735 rental properties listed to let.

During Q1 of 2020 when the pandemic hit and the first lockdown was implemented, dwindling demand due, in part, to working from home restrictions saw the level of rental stock surplus across major cities start to climb.

It continued to climb consistently throughout 2020, hitting a high of 171,080 at the end of Q4, 2020 - a 77% year on year increase in rental stock surplus.

However, a slow but steady return to normality during 2021 has seen this trend start to reverse. In fact, the number of rental properties available on the market has slowly declined since the start of the year, with the latest data showing just 57,382 available on the current market.

This is not only -66% less than the pandemic high of 171,080, but some -41% lower than the levels seen prior to the pandemic.

Sales Director at Sequre Property Investment, Daniel Jackson, commented:

“2020 was an incredibly tough year for landlords, particularly those with rental properties in major cities who were largely reliant on tenant demand from working professionals. With restrictions preventing many from heading to their place of work, demand for rental homes within city centres plummeted as many chose to rent for less further afield while working remotely.

However, 2021 has seen a slow but steady reduction in the level of rental properties left sat on the market as a trickle of tenant demand has started to return. However, the latest data suggests that with restrictions all but gone, this trickle has turned into a strong and consistent stream and available rental stock is now lower than pre-pandemic levels.

This will be welcome news for those landlords who will no longer need to lower their rental income expectations in order to secure a tenant and we should now see a far greater level of stability remain for the remainder of the year.”

Data sourced from Rightmove

Table shows the total available rental market stock across each city at the end of each respective quarter during the pandemic

City

Q4, 2019

Q1, 2020

Q2, 2020

Q3, 2020

Q4, 2020

Q1, 2021

Q2, 2021

Q3, 2021

London

37,558

46,621

74,230

90,175

102,240

85,929

73,797

35,292

Oxford

1,608

1,385

1,971

1,431

1,893

1,681

1,472

702

Cambridge

520

773

1,098

977

928

1,134

865

515

Manchester

6,265

6,127

6,868

6,709

8,607

7,747

5,236

2,986

Liverpool

4,004

3,619

3,821

3,120

4,240

1,489

2,416

1,521

Birmingham

5,268

5,511

6,325

5,291

6,307

6,298

5,131

2,779

Nottingham

3,049

2,212

2,603

2,640

4,861

4,164

2,606

1,450

Leeds

8,109

5,668

4,706

3,538

7,840

1,363

5,544

1,944

Sheffield

3,851

3,695

3,425

2,437

3,946

3,515

1,887

1,159

Leicester

2,697

2,421

2,340

2,256

3,268

3,101

2,526

1,832

Newcastle

5,246

4,404

3,853

2,609

5,764

4,662

2,370

1,132

Southampton

3,060

3,023

2,900

2,491

3,361

3,550

1,743

870

Portsmouth

1,625

1,532

1,488

1,497

1,760

2,038

1,410

974

Bournemouth

1,740

1,611

1,521

1,355

2,202

2,303

659

514

Plymouth

1,608

1,322

1,104

846

1,621

1,500

858

570

Bristol

2,901

2,102

2,286

1,972

3,556

3,559

1,637

964

Cardiff

3,530

2,833

2,693

2,179

3,421

2,927

1,430

595

Swansea

516

673

673

366

520

346

287

123

Glasgow

1,686

1,915

2,205

1,442

1,943

2,050

1,538

582

Edinburgh

1,038

1,644

2,349

1,459

1,754

1,935

1,727

360

Aberdeen

856

936

1,092

1,030

1,048

905

868

518

All Cities

96,735

100,027

129,551

135,820

171,080

142,196

116,007

57,382

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