Demand for rental properties outweighs supply

Permalink: Demand for rental properties outweighs supply
by Gill Montia

A study by Association of Residential Letting Agents (Arla) members has found that many had been forced to turn away potential tenants following a shortage of available properties. The demand for rental property far outweighs the supply in the 3 month period ending May 2007.

All types of property - including detached, semi-detached and terraced houses as well as flats - were in increased demand, particularly in London with two thirds of landlords recording increasing rent costs.

The south east regions reported much the same, while across the UK, agents reported increases of 34%.

According to Arla, increased demand signifies that the average void period for a buy-to-let property in the UK is now just 24 days. It has been reported that tenants are staying in rented properties for 12 months; the longest times are in Central London – an average of 17 months.

There is a lack on all types of properties in the UK and the above results demonstrate that the shortage of good quality homes is also evident in the rental sector.

Arla profiled the average buy-to-let investor as an over 35, cautious individual and who is looking for a secure long-term investment. It is noted that more people are being lured to the market and forecasts that the amount of tenancies is set to increase over the next decade.