UK Letting Agents Say Rents Are Stabilising

Association of Residential Letting Agents (ARLA) recently reported a significant increase in the number of newly registered tenancies, which fact proves that oversupply of rental properties across the UK declines, thus, contributing to a faster recovery on the buy to let market.
The survey, which was conducted by ARLA among its member-letting agencies, showed that the historically low level of new tenancies, which characterised the British rental market in the past months, is becoming normal as the surplus of rental properties is seen no more.
According to information revealed by survey respondents, an average of 83% of UK letting agents signed up at least 10 new tenant agreements in the past third quarter of 2009, which compares to 79% in the second quarter of the year.
Also, more than 30% of respondents said that supply and demand for rental properties in the UK are balanced, which is 15% more than last quarter.
In the opinion of ARLA’s operations manager, Mr. Ian Potter, balanced supply and demand is very important when it comes to stabilisation of the residential rental property market. He added that significant improvements like this contribute greatly to market recovery and bring about increased confidence among tenants and landlords.
Not only did ARLA survey highlight the increased number of letting agents who reported a decrease in supply of rental properties, but also it revealed that the number of respondents who feel that supply exceeds the demand shrunk from 70% to 43%. Moreover, 14% more (a rise from 10% to 24%) letting agents claimed that the number of tenants exceeds the number of properties available for rent.
Let us remind that the UK rental market has always been characterised by excessive demand for rental properties and low supply; the situation changed in 2008 as the economic downturn resulted in oversupply of properties that proved impossible to sell.