Letting agents forecast lower property supply

ARLA also found that supply of rental accommodation also grew in November. Picture: TSPL

Two out of five letting agents expect the supply of property to fall over the next five years, the highest rate this year, according to research published yesterday.

The Association of Residential Letting Agents (ARLA) revealed the findings from its monthly private-rental sector report, noting the impact of the Chancellor’s announcements around buy-to-let tax in his autumn statement.

This involved a 3 per cent increase in stamp duty for buy-to-let (BTL) and second homes as of next April to help first-time buyers.

David Cox, managing director of ARLA, said: “The new stamp duty increases will make owning a BTL unprofitable for a lot of landlords, and certainly make new investors think twice about purchasing a BTL property.”

However ARLA also found that supply of rental accommodation also grew in November, rising by 9 per cent month on month to reach 189 properties managed per branch.