The UK has a major shortage of rental properties and demand is outstripping supply, research has shown.
The findings were discovered during research by the Association of Rental Letting Agents (ARLA), who surveyed 531 offices in the first quarter of 2010 and 382 landlords during March 2010. They discovered that over two thirds of agents are reporting that demand for rental properties has outstripped supply across the UK and that the private rented sector is struggling to keep up with demand.
The increase in demand for properties has risen by 50%, compared to the last quarter of 2009; back in Q3 of 2009, the figure was just 24%, which highlights a significant rise. Letting agents from around the UK are all reporting a shortage of good quality property becoming available on the market and say that tenants are tending to stay longer in their rentals, which doesn’t help the supply situation.
In London, for example, one agent reported that rental property stock levels had fallen by 60% over the last year and that rent prices are rising.
Obviously, this is nothing short of good news for existing landlords, especially those with properties about to come up for rent. It’s also a good sign for those considering buying investment property, as there’s nothing better than a market that is ripe for tenants.
If you’re considering buying an investment property, or in starting your own portfolio of investment properties, than HBF Investments can help you do just that.