Now Rental demand also outstripping supply....

HAMISH_MCTAVISH

Demand for rented homes is outstripping the supply of properties available to let following a rise in reluctant tenants, research claimed today.

The Association of Residential Letting Agents (Arla) said the number of homes available to let was falling, while demand for rented accommodation was rising as people struggled to find properties to buy or mortgages they qualified for.


Around 41pc of letting agents said there were more potential tenants than properties during the final quarter of 2009, up from 24pc during the three months to the end of September.

The situation is a marked turnaround from early last year, when the rental market was flooded with properties from so-called accidental landlords, as people who had been unable to sell their home while house prices were falling, were forced to rent it out instead.

But the number of accidental landlords has fallen in recent months as the property market has picked up, enabling them to sell their homes.

At the same time, many people who would like to buy a property are struggling to find somewhere suitable, due to the shortage of homes on the market, while others are unable to raise the deposits they need to meet the strict lending criteria of banks and building societies, forcing them to rent instead.

Around 54pc of letting agents said they thought consumers were being forced to rent a property rather than buy one.

The research also showed that the length of time for which a property is empty between tenants fell slightly during the fourth quarter to 3.9 weeks, down from four weeks during the previous three months.

Ian Potter, operations manager at Arla, said: "New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job move.

"And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages."

But he warned that, while the private rented sector would be key to meeting the accommodation needs of future generations, it was likely to struggle without significant Government support.

http://www.telegraph.co.uk/finance/personalfinance/7059163/Buy-to-let-boost-as-demand-for-rented-homes-is-up-24pc.html

Rents will be going up this year, without a doubt.

Supply of properties for sale decreasing, supply of properties for rent decreasing, population increasing, and housebuilding woefully failing to keep up with population growth.

The housing shortage deniers are looking more foolish by the day.

nearlynew

If I was earning 80k per year, had over 100k in cash, was 100% convinced that house prices and rents were going to increase massively over the next few years because of shortages and I thought that affordability was the best for years, I would be buying as many houses as I could.


Otherwise, people might think I was full of it.

abaxas

In other news.

National association of cheese producers say cheese buying is up in the recession.

etc etc

As per usual, lies from those who it would advantage.

PasturesNew

Rents are way too high ....

bigblackdog

good news as i am about to rent out my house

Swiss_Toni

I know it is always difficult to "call" the state of the market from just looking at your own local conditions (what is why I have a chuckle at the posters here who "know" what the market is doing based on their own microcosm?!).

But I have just put our 3-bed detatched with garage and garden on the market for rent and with 1 day in the small ads of our local paper (and not starting on the property day either!), the phone has been ringing off the hook - 12+ calls in the first day, more on day two and once it had gone (to the first viewers) I was fielding calls hourly.

Market feels good around here.

:beer:

FATBALLZ

My rent won't be going up. Loads of empty places near me. On a personal note you may benefit from psychiatric help, you may have anger management issues that surface in the form of angry posts wishing misfortune against those who do not own property. You may hold much wealth in property at the moment however if your anger continues to get the better of you it an early grave awaits and your property assets will not benefit you.

Mr.Brown_4

HAMISH_MCTAVISH wrote: »

The housing shortage deniers are looking more foolish by the day.

Yeah. I wouldn't be so sure about that Hamish. I suspect there are a number of people on here who view your output with incredulity, rather than feel particularly stupid about anything.

HAMISH_MCTAVISH

Mr.Brown wrote: »

I suspect there are a number of people on here who view your output with incredulity, rather than feel particularly stupid about anything.

I suspect they are the same people who view the monthly price rises announced by all the indices with incredulity.

Doesn't change the fact prices are indeed rising though.....

There is no help for the hard core bears. They won't realise how stupid they've been until it's far too late, and it's cost them a packet.

macaque_2

But the number of accidental landlords has fallen in recent months as the property market has picked up, enabling them to sell their homes.

Macaque's intrepid reporter asked if "the numbers of prospective renters were falling at the same rate as accidental landlords were selling their properties".

ARLA's response to this question was "f*** off!"

nembot

Certain areas maybe seeing increased activity, many areas are not. Rentals are taking months before they're let within 10/15 miles from here, with heavy reductions on cost pcm.

It's very unlikely we will see rising rents around here, in the next 12 months.