Demand for rental properties is far outweighing the number of residences on the market for let, a new report by the Association of Residential Lettings Agents (ARLA) has stated. According to the study, 74 per cent of members said they experienced more demand from potential tenants than properties available during the second quarter of 2011, with the figure rising to 82 per cent in London.
This compares to two years ago, when only ten per cent of UK lettings agents said they were seeing the same thing. Ian Potter, operations manager of ARLA, said that homebuyers are seeing a dearth of available properties and are looking at the rental sector instead, which has boosted demand - but they are now finding there to be just as much of a supply problem.
"To work towards a solution, government needs to look seriously at ways of incentivising investment into the private rented sector to increase the number of properties available for rent," he suggested. ARLA reported earlier this year that there was an influx of high-value rental property at the beginning of 2011.