ARLA sees 'influx' of high-value rental property
As demand for rented accommodation increases across all areas of society, the number of high-value properties entering the residential lettings market is growing.
In a new report, the Association of Residential Letting Agents (ARLA) said its members saw an "influx" of higher-value homes coming into the private rented sector at the beginning of the year.
In the first quarter of 2011 there was an 11.6 per cent rise in the average capital value of rental houses, surpassing the last market peak in 2007.
A typical home in the private rented sector is now valued at £447,900, up from £401,400 during the previous quarter.
Growth was driven by higher capital values in London and the south-east, which rose by 14.8 per cent and 16.2 per cent respectively.
The figures also showed an increase in average capital values for rental flats, rising by 3.4 per cent from £258,500 to £267,400.
ARLA's operations manager Ian Potter said the data does not necessary mean that individual properties are becoming more expensive.
Instead, it suggests that tenants now have more options in terms of the types of rental property available to them.
"Today's housing climate and uncertainty around jobs and income means many people are choosing to let rather sell their home, causing an increase in the number of family-sized homes available to rent," he explained.
Some 66 per cent of the residential lettings agents surveyed by ARLA said they had seen an increase in the number of semi-detached properties coming onto the market, while 63 per cent saw a rise in the number of detached properties.
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