Rental property demand rising giving further evidence to buy to let stability
There is a growing level of stability in Britain’s residential buy-to-let sector, thanks to the fact that demand for rental properties is once again on the rise, after nearly a year of stagnation and decline since the financial crisis broke out late last year. A report published by the Association of Residential Letting Agents (ARLA) suggests that one of the main challenges that landlords faced in the past 12 months—namely, the oversaturation of the market, due to the poor balance between supply and demand—is probably at an end. More than 8 in 10 ARLA members (83 percent), were able to register a minimum of 10 tenancies over the past three months, whereas early this summer, the same figure stood at 79 percent. In fact, most ARLA letting agents were able to register well above this minimum threshold, with the average number of tenancies signed over the past quarter rising from 32 to 36.
Even better news is the fact that ARLA members are becoming much more confident in the state of the buy-to-let sector. While only 19 percent of agents responded to a survey question in the affirmative, which asked them whether they felt that there was a healthy balance between supply and demand in the last quarter, this proportion has now jumped to 33 percent. Ian Potter, ARLA’s manager of operations, suggested that what might be behind the positive new trend is a change in the way in which rent flats and homes. While many were happy or at least willing to share accommodation in the past with others, in order to cut costs, a growing number are now assuming the greater financial burden and setting off to rent independently, so as to enjoy more privacy and freedom.