Demand for rental properties soars
26/01/2010 - Lack of available accommodation for rent
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Landlords could be in for an easier ride as recent figures show that the demand for rental homes is increasing rapidly. The rental market has faced up and downs since the beginning of the credit crunch, firstly with an over supply of flats to rent and now an apparent undersupply of properties.
According to the Association of Residential Letting Agents (Arla), the number of homes available to rent has fallen while the demand for properties has increased by 24 per cent during the last three months to September 2009. More than 40 per cent of letting agents reported more potential tenants than properties available to rent, up from almost 30 per cent in the previous 3 months to September 2009.
Home owners are finding it difficult to keep up with their mortgages and are forced to sell and live in rented accommodation, first time buyers are unable to secure mortgage funding and properties that had been rented out in the short term have now been sold. The number of people forced to rent properties rather than buy has gone up and almost 55 per cent of letting agents have seen a rise in the demand for properties. The length of time a property is unoccupied has decreased from 3.9 weeks against 4 weeks during the previous 3 months.
