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 the New Forest Area.
The survey conducted by ARLA, expressed that 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 locally since 2001, promoting the transition from the sales market into the rental sector. The amount of new tenants has remained consistent throughout 2011.
Tim Hyatt, president of ARLA, said: “The UK cannot rely on the rental sector to support the housing market in peretuity. 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.”
Locally, in and around the New Forest area (specifically New Milton, Barton On Sea, Highcliffe and Lymington), we have not noticed a drop in demand over the past few years – if anything, there is an increase as people struggle to get mortgages and more and more people are re-locating from other areas. However, we have noticed a steady drop in supply, with so many landlords reluctant to rent their properties, even though they have been up for sale for in excess of 1 year in some cases. Demand for 1 and 2 bed properties is massive. For the most part, we are letting properties within a week of them coming on the market – some without even having to market them, as our list of applicants grows on a daily basis!
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 New Forest on 01425 616017 We can provide you with the up to date and expert information you will require.