The number of rental properties managed per letting agent branch rose by 8% in April to the highest level this year, according to the Association of Residential Letting Agents (ARLA).
The increase from March this year follows the rush from buy-to-let landlords pushing to complete sales ahead of the April stamp duty increase deadline.
However, supply still stands at 5% lower than in April last year and continues to fall year on year. In April 2015, the average number of properties managed per branch was 193, this year it stands at 183.
Demand is also falling year on year. In April, the number of prospective tenants per branch was 34, down from 33 the previous month and down from 36 April of last year.
Rent costs are expected to rise, following the buy-to-let stamp duty rise. 66% of ARLA agents predicted that the stamp duty reforms will push rent costs up for tenants down the line.
In addition, ARLA agents reported an increase in the number of landlords selling their buy-to-let properties. This was an average of four, up from three in March, pulling out of the market, showing an increase for the first time in a year.
David Cox, ARLA’s managing director. said: “It’s likely that this increase in supply is only temporary. At the end of April we saw a flurry of landlords seizing the last few moments before the stamp duty rise to complete sales, triggering an increase in the supply of empty rental homes to be filled this month.
“However, we expect that fewer investors will be taking on buy-to-let properties over the next six months, following the price hikes, meaning that once these properties are filled we’ll see supply nose-dive once again.”