Letting demand to see housing stock run out?

Posted: 17 Oct 2011 13:19:02 GMT

Demand in the letting sector is outstripping supply.

Letting demand is increasing by so much that the private rental sector is nearing capacity.

This is according to the Association of Residential Letting Agents (Arla), which found 74 per cent of agents think demand is outstripping supply.

London and the south-east are the two locations where the situation is at its worst, while the average stay is now 19 months.

Tim Hyatt, president of Arla - which was formed in 1981 and has 3,500 member offices throughout the UK - noted it is not feasible to expect the rental sector to prop up the housing market.

"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," he added.

Mr Hyatt continued by saying the government is not doing anything to encourage more landlords into the market.

Because of this, he observed the quality of housing stock being offered could decrease.
 

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