Rental Demand Goes Up

The number of tenants looking to rent property privately has reached its highest level for five years in the UK, according to figures from the Association of Residential Letting Agents (Arla).

There is a combination of a number of different factors that is pushing up demand. The factors include the fact that more people are living alone, there has been an increase in immigration and the housing market is weakening. In particular, the South East has seen a shortage of rentable properties, with central London seeing a surge in demand.

The hard facts of the housing market have put more people into the rental market. Unable to keep up with increasing mortgage repayments many have had to sell up and leave, while others have fallen into the arms of the repossesses. From there they have little choice but to try and find somewhere suitable to rent.

Arla said that across the UK lettings agents were warning of shortages. Head of operations at Arla, Ian Potter, said that the peak demand should not come as a surprise as a softening in the sales market is always a precursor to a drive for further demand in the rental market.

According to Arla’s quarterly report, 57% of lettings agents in the South-East of England said that they were experiencing more demand than supply. In other parts of the UK, 37% had reported rental shortages. Meanwhile, Central London has seen demand for rental property increase by a multiple of 13 over the last five years.

Other figures show that tenants are now renting for well over a year, according to the Arla survey, drawn from respondents from 517 letting offices. An earlier average had property staying empty for an average of five weeks, but now the length of time is down to well under a month.