Buy-to-let sector 'will expand well into 2012'
Demand for tenancy agreements
is likely to increase for at least the next year, as it is claimed that the buy-to-let
sector will continue to expand well into 2012.
The Association of Residential Letting Agents (Arla) says demand for rental property will continue to outstrip demand for much of 2011 and into next year.
It comes as the Royal Institution of Chartered Surveyors reports that a continuing lack of properties is pushing rents upwards.
"The lack of new rental stock for the private rented sector was the dominant factor in the market last year, and will continue well into 2012 because of the broader issues of diminishing housing supply and lending drying up," said Ian Potter, operations director of Arla.
Research shows that 41 per cent of young low-to-middle earners live in privately rented accommodation, up from just 14 per cent in 1988.
Most of Arla member offices (59 per cent) believe this demand will continue to increase, while nearly four in ten think more people could be looking for buy-to-let advice
to enter the market.
Written by Rachel Crook
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Published on: March 3, 2011
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