ARLA reveals rental demand continues to outstrip supply
Demand for good quality rental properties continues to outstrip supply, despite the rise in average rental prices, according to the latest figures from the Association of Residential Letting Agents (ARLA).
The letting industry regulatory body’s bi-annual survey of its members revealed that more than 58% are still experiencing a significant gap between supply and demand.
This is an increase of 3% from the previous survey carried out in December 2011.
Meanwhile, the report also states that three months ago the national average void period reduced from 3.1 weeks to 2.9 weeks.
Rachel Clarke from Castledene Property Management in Manchester said…
“There is usually a drop in tenant demand for suitable properties to rent in the run up to the Christmas and New Year festivities, but this didn’t happen in 2012. Such high demand from tenants means that there has never been a better time to be a landlord, as rising rents and competitive property prices mean Buy-To-Let property owners are likely to secure a great yield from their property investments”.
A new study by Rightmove has revealed that average PRS rents are expected to rise by around 2%, which means that PRS rents may be reaching the upper limits of affordability.
The expected average rent rise of 2% in 2013, is considerably lower than the 4.5% annual increase recorded for the past three years.
landlords planning a rent freeze in 2013
The property search website found that nearly two-thirds of landlords intend to maintain their rent at current prices.
The Rightmove study also revealed that 59% of tenants would like to buy their own home, but feel they are trapped in the rental sector as they cannot afford to get on the property ladder.
This figure is up from 54% recorded in the previous quarter and the highest level Rightmove has recorded since the survey began in 2010.
