The rental market is still suffering from a lack of available properties. Less property owners are looking at rental as a temporary solution if unable to sell their house as property sales are picking up. More people have been becoming investment landlords but we are still in a situation where the number of tenants is outweighjing the rental property on offer.
In all the areas that we cover we are experiencing high demand for rented accommodation with some properties being let within 24 hours of them becoming available. This is excellent news for landlords but the lack of available properties is causing problems for the increasing number of prospective tenants looking for somewhere to rent.
This does seem to be a trend affecting a lot of members belonging to the Association of Residential Letting Agents as the report below confirms.
Number of reluctant landlords is falling, says ARLA
The number of reluctant landlords is falling, according to ARLA.
Over the past three months, ARLA agents have reported a decrease from 26% to 21% in the proportion of rental property coming on to the market because it cannot be sold.
This also represents a sharp drop of 21% on the figure of 42% recorded last year.
In its Q3 survey of ARLA members, 524 agents gave their views on the market.
The agents say that tenants are still faced with strong competition for rental homes: 52% of ARLA members said there were more tenants than properties available. However, the proportion is down from 54% in the previous quarter.
The south-east (excluding London) has the highest proportion of members reporting more tenants than properties (67%). By contrast, only 17% of London agents themselves reported more tenants than properties.
Ian Potter, managing director of ARLA, said: “Much has been written recently about the recovery of the residential sales market, and it would appear that these effects are now being felt in the private rented sector.
“While the departure of accidental landlords from the sector will be a good thing for the individuals concerned, there is a real and ongoing worry about the level of rental property supply across the country.”
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