The first base rate cut since 2020 has boosted rental stock levels across major British cities, according to new research.
Zero Deposit analysed available stock across 15 cities, looking at the number of homes available to tenants and those listed on the market in the 30 days following the Bank of England’s decision to cut interest rates to 5% from 5.25% on 1st August.
In Edinburgh, 435 homes have entered the rental market, equating to 75% of all current stock and marking a 300% increase 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 properties 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%).
The prospect of cheaper mortgage costs may have spurred some landlords back onto the market for the short to mid-term at least, believes Zero Deposit.
CEO Sam Reynolds says landlords across the UK have had to contend with far higher interest rates than they’ve become accustomed to, causing many to consider exiting the sector. However, it 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,” says Reynolds.
“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.”
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