Supply levels in the private rental sector are improving, despite demand still being high and causing much competition, figures from the Association of Residential Letting Agents’ (ARLA) latest quarterly report reveals.
ARLA has exposed an increase in the amount of buy-to-let properties managed by ARLA members in the last quarter, from 135 houses in the third quarter (Q3) to 148 this quarter. This is almost a rise of 10%.1
ARLA members believe that the amount of landlords investing in more properties is fuelling the improved supply in the market, as the number of landlords buying rental properties now surpasses the ones selling their assets.
The amount increasing their portfolio went from 27% to 30% in the last quarter. Additionally, the landlords selling their investments dropped from 32% to 23%.1
Although this increase will be a positive for renters, demand still outweighs supply. According to 65% of ARLA members there will still be more prospective tenants than properties available, a drop from 68% last quarter. The market appears to be moving towards equal opportunity.
Private Rental Sector Supply Improving
Managing Director of ARLA, David Cox, says: “This quarter we’re seeing promising signs that the market is taking small steps towards achieving a better balance between supply and demand, or at least it is easing slightly. With more landlords investing in their portfolios, ARLA licensed members have reported a growth in supply, while the level of demand witnessed last quarter has fallen slightly. Of course, the market has a fair way to go in terms of completely balancing out.”
A number of ARLA members have also mentioned that there is a rise in rental property due to homes coming back onto the market, after they did not sell. This rose for a second consecutive quarter, from 16% to 24%.1
Tenants are benefiting from the slightly less competitive sector, after the last six months saw prospective tenants for each property increase from 32% to 35%.1
Cox adds: “It’s great to see an increase in consumers making an active play to agree on rent prices. Letting agents should be able to help tenants to get the fairest deal, and to ensure the process of finding a property, and signing on the line, is as smooth a process as possible.
“Renting can be a stressful experience; to ensure the best standard of practice and level of advice, always ensure you are using an ARLA licensed agent. All ARLA licensed agents follow a strict code of conduct, therefore you are guaranteed the highest professional standards to guide you through the rental process.”1