Tenant demand reaches record levels

Posted: 28 Nov 2007 12:02:15 GMT

Tenant demand is at its highest level for five years, according to the latest figures from the Association of Residential Lettings Agents (Arla).

Tenant demand is at its highest level for five years, according to the latest figures from the Association of Residential Lettings Agents (Arla).

The firm says that a weakening market is encouraging potential buyers to adopt a wait and see approach before buying and this means that more of them are turning to rented accommodation.

"This peak demand should come as no surprise," said Ian Potter, head of operations at Arla.

"It has been driven up by the many competing demands for rental accommodation and now we have softening house prices. Softening in the sales market is always a driver of further demand in the rental market," he continued.

Arla has revealed that two thirds of letting agents in prime central London report that they have more tenants than houses to put them in.

Similarly, in the south-east, 57 per cent of agents are reporting the same situation, with that figure falling slightly to 37 per cent for the rest of the country.

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