ARLA: More tenants than landlords
by Morag Lyall
Two-thirds of agents have reported an imbalance between the number of tenants and stock on the market, research by the Association of Residential Letting Agents (ARLA) revealed.
It found that this is an increase from 59 per cent in the last quarter alone.
This could be a signal to landlords with a leasehold to increase their property portfolio
and even to up their rent to take advantage of the poor supply.
Mark Garner, managing director at LettingZone, commented: "New households – people leaving university, getting divorced or looking for their own house – are coming into the rental market looking for somewhere to rent and there just isn't any new stock because existing landlords haven't bought more properties to rent out because the mortgage market is very tight now."
He explained that unless a landlord has a 25 per cent cash deposit it is difficult to buy a house or remortgage an existing property to release equity.
Mr Garner predicted that this lack of stock on the market could continue for four or five years unless mortgage lending increases.
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Published on: July 19, 2010
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