Private rented sector in stock crisis

According to the Association of Residential Letting Agents (ARLA) recent report the Private Rented Sector is in crisis, with a severe lack of stock availability.

Over 74% of the associations letting agents have responded by saying that tenant demand has hit record levels and demand is outstripping available stock.

Demand is particularly acute in London and the South East. ARLA’s survey was conducted with 572 agents, who also reported that more tenants were choosing to stay in their existing property than choosing to move on in such competitive market, accordingly the average tenancy has now increased to 19 months.

Since 2001 there has been a constantly upward trend in new tenancies, with a fairly consistent figure of new tenancies every month being at 34 per branch.

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.

“The Government is doing little to encourage landlords to invest in new properties therefore we are running out of quality stock to offer to tenants. “This is reflected in rent increases and a lack of choice for consumers.”