Demand continues to outstrip rental supply for most lettings agents

In the past, many people who went into private rental accommodation did so as a stop gap before getting a mortgage and buying their own home. However, over recent years things have changed radically and many of those in private rented homes are having to be in it for the long haul because they are unable to get the finance that they need to get onto the property ladder for themselves of are too concerned about matters such as the economy and their job security.

Demand for rental accommodation has soared over the past couple of years, rising to unprecedented heights and resulting in demand by far outstripping supply in many areas. According to the Association of Residential Letting Agents the situation is now becoming difficult because the private rental sector has come under increased strain. The association said that a rising number of its members are now reporting far greater demand than supply.

Around three quarters of ARLA members are said to have seen demand outstripping supply in the private rental sector, with more and more people struggling with mortgages and opting for private rental homes instead. ARLA also said that tenants were now staying in their rented homes for record periods, having reached a record high of nineteen months. London and the South East have seen particularly high levels of demand according to figures.

Tim Hyatt, president of ARLA, said: “The UK cannot rely on the rental sector to support the housing market in perpetuity. The reality is that there is a finite amount of rental property and unless both housing supply and mortgage availability improves then renters will find that their options in the market are reduced.”

Tags: home, president, private rental sector, stop, arla, high