March 14, 2011
Rental Demand Goes "Mental" In 2011 & 2012
Demand for private rental sector (PRS) property will continue to outstrip supply for much of 2011 and into next year, the Association of Residential Letting Agents (ARLA) claims.
In a survey of members, ARLA found that 59% of agents believe tenants will be competing for properties this year, although almost four in ten thought that more private buy to let landlords will enter the market over the next 12 months.
The Association’s operations director, Ian Potter, sums up: “The PRS is taking on the burden created by diminishing housing supply … this issue has been identified as UK-wide by our members but particularly … in the south east and London.”
Mr Potter is therefore urging the Government act now to address the quality of the sector’s housing stock by improving options for sustainable refurbishment, and introducing regulation to stamp out bad practice.
However, more than six out of ten ARLA member offices surveyed think that the quality of rental property will remain the same in 2011.
Last week, the Royal Institution of Chartered Surveyors (RICS) reported that strong tenant demand resulted in rents rising rapidly in the three months to the end of January.
According to the Institution’s latest Residential Lettings Survey, 40% more chartered surveyors reported rising rather than falling rents, the highest positive reading in the survey’s history.
