London rental demand higher than supply, study reveals

Posted: 11 Sep 2008 11:22:27 GMT

The demand for rental property in London far outweighs supply, new research has revealed.

According to a study conducted by the Association of Residential Letting Agents (Arla), more than 40 per cent of letting agents in the capital have a higher number of prospective tenants then they have available properties.

The research also indicated that due to the surge in rental demand, the weekly cost of renting a property has increased. The average flat is now priced at £253 a week, while the average house is £387 a week.

What's more, the Arla survey found that the overall number of people renting a property in the UK has risen by 20 per cent in the last three months

Ian Potter, head of operations for the organisation, said that the research shows the rental market is not being as adversely affected by the credit crunch as some people might think.

"This steady rise in rental growth that we see yet again, coupled to clear evidence that there is no unusual selling, proves once again that the credit crunch effect on the private rented sector exists only in the imagination.

Mr Potter went on to say that this is "underlined" by the length of time people remain in a rented property. In London, for example, the average rental period is now 18 months.



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