The private rented sector is running out of capacity, according to ARLA.
Many agents are reporting more tenants than properties; this has hit a record high with 74% saying that demand is outstripping supply. The increase in demand is particularly acute in London and the south-east.
The survey conducted by ARLA, comprising of 572 lettings offices operated by members expressed tenants are also staying in their properties a lot longer than before. This trend has increased to 19 months; tenants are reluctant to give up their current property in such a competitive market.
The amount of new tenancies has consistently risen since 2001, promoting the transition from the sales market into the rental sector. The amount of new tenants has remained consistent throughout 2011 with 34 new tenants every month per branch.
Tim Hyatt, president of ARLA, said: The UK cannot rely on the rental sector to support the housing market in perpetuity. The reality is that there is a finite amount of rental property, and unless both housing supply and mortgage availability improves, then renters will find that their options in the market are reduced.
Michelle Stoppard, franchise owner of Martin & Co Pontefract added In the Pontefract area, our recent enquiries have mainly been for quality 2 or 3 bedroom properties, with good links to the motorway networks, although we have also seen demand for 4 bedroom properties in rural villages. These tenants have been happy to sign up to 12 month tenancies.
With the increased demand of rental stock, landlords wary about entering the market can rest assured in knowing that the rental sector is more and more buoyant than ever.
For more information on renting out your property talk to Martin & Co Pontefract on 01977 799550 or email us at Pontefract@martinco.com. We can provide you with the up to date and expert information you will require.