Spike in staycations destroying rentals homes market

·2-min read
10 places which recorded the largest falls in rental supply have become popular staycations  (AFP via Getty Images)
10 places which recorded the largest falls in rental supply have become popular staycations (AFP via Getty Images)

The number of rental properties in staycation hotspots has dropped as buy-to-let investors have moved long-term lets on to the short-term market.

Rightmove’s data found the supply of long-term rental properties on the Isle of Wight in June and July had dropped by 82 per cent compared with the same period in 2019.

The 10 places which recorded the largest falls in rental supply have become popular staycations destinations.

In North Devon, rental supply collapsed 80 per cent. Also in Northumberland and South Tyneside in the North East, they were down 74 per cent and 73 per cent respectively.

This shortage of property for rent has resulted in competition among tenants across the top 10 areas, including the Isle of Wight, which saw competition increase by 376 per cent.

Ben Hollis, of Lancasters estate agents, told The Telegraph: “Normally, across the whole of the Isle of Wight, there will be 200 properties available. Today, there are 18. There was a point a few weeks ago when there were four.

“Now we leave a rental property online for an hour, and that will generate 30 inquiries.”

Limited supply means desperate tenants have been left without places to stay, he explained.

Some tenants have even resorted to offering to pay a year’s rent in advance, Mr Hollis claimed.

It comes as the Mayor of London warned the average London rent could spiral to almost £30,000 per year by 2025.

In July, Mr Khan claimed if rent rises are allowed to continue unchecked then the average monthly rent bill faced by London’s 2.5 million strong army of renters is set to hit £2,300pcm – a £370pcm increase.

The grim forecast is based on current rent levels plus research from estate agent Savills which has predicted that London rents – excluding brand new homes - will increase by 19 per cent between 2020 and 2025

“Today’s analysis paints a stark picture,” said Mr Khan. “If we want the next generation of nurses, police officers, transport workers and key workers to train and work in the capital, we have no option but to keep a check on spiraling rents.”

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