Buy-to-let remains buoyant

The number of private tenants seeking property reaches a five-year high.

The level of tenants seeking to rent property privately has hit a five-year high across the UK, letting agents say.

Up to 37% of agents are reporting rental property shortages nationwide, partly because people are les willing to buy, according to the Association of Residential Letting Agents (Arla).

Arla adds that aside from a weakening of the housing market, the rise in demand is also caused by an increase in immigration and more people living alone. The figures are based on a survey of Arla members.

Ian Potter, head of operations at Arla, says: "This peak demand should come as no surprise. Softening in the sales market is always a driver of further demand in the rental market."

The shortage of rental properties is particularly acute in the south-east of England, while central London has seen demand surge, Mr Potter says.

In the south-east of England, 57% of letting agents are seeing demand outstrip supply, according to the trade body’s quarterly report. Central London has seen a 13-fold increase in demand for rental property over the past five years.

At the same time, tenants are choosing to rent for "well over a year", Arla says in its survey, based on responses from 517 letting offices across the UK.

Meanwhile, property is remaining empty for "well under a month", down from an earlier average of nearly five weeks.

Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.

Did you enjoy that? Why not share this article

SAVE MONEY NOW

Other articles you might like

Popular guides