We had the era of reluctant landlords and now it seems that the market is to be flooded with reluctant tenants. Further to yesterdays blog, the ARLA (Association of Residential Letting Agents) has released research which clearly shows the rise in people who are demanding rental accommodation, and a lot of them would rather be in their own homes.
This includes first time buyers, as I outlined yesterday, but also people who were forced to sell up at the height of the recession.
The ARLA is indicating that the situation is such that there is now a good chance demand for rental properties will soon outstrip supply. In fact, they ascertain that this has already started. During Quater Four, 2009, an average of 41% of members surveyed reported more tenants than properties – compared with just 24% last quarter.
A spokesperson for the ARLA had this comment on why this situation is occurring:
“New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages”
It is great for landlords to be in the driving seat after a very tough year but it is also a situation that the Government must keep an eye on. To not have enough housing for your population is a very serious problem, indeed.