While Demand for Rental Property Rises, Supply Falls
October 1, 2014 |
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Tenants across the UK are in for a battle, according to the third quarterly report from ARLA. Over two-thirds (68%) of respondents said there were more would-be tenants than there were properties available. This figure has risen for the third consecutive quarter, growing from 46% in Q3 2013. The rise in the last quarter is also the largest quarterly jump since it began to increase.
But the pressure is compounded by the decreasing supply of private rented accommodation, with ARLA members recording a 6% fall in the average number of managed buy-to-let investment properties on their books.
Members also reported that the number of landlords investing in buy-to-let property fell by 8%. But at the same time, the number of landlords selling their buy-to-let property has increased by 5%, swinging the buy-sell relationship from 35%-27% to 27%-32%, meaning the number of landlords selling property now exceeds the number buying property for the first time in four years.
But the report also showed that tenants, rather than bowing to pressure and throwing down a deposit at the first opportunity, are actually being more scrupulous about who they give their money to. Members reported a 2% increase in the number of tenants requesting references for potential landlords.