Renters Struggle as Supply Drops and Demand Soars

People looking to rent can expect to face fierce competition for privately rented residential property, as the number of landlords selling property exceeds the number buying for the first time in four years.

The third quarterly report from the Association of Residential Letting Agents (ARLA) has found that the demand among tenants had increased but the number of houses available for rent had decreased.

The report found that over a third - 68 per cent - of respondents reported more would-be tenants than properties available.

This figure represents the third and biggest successive increase, from 46 per cent in quarter three of 2013, to 54 per cent in quarter one of 2014, and 59 per cent in quarter two 2014 - meaning an increase of nine percentage points between the second quarter and the third, and the largest increase since numbers were on the up.

Director at Nock Deighton, Dawn Clarke, who is ARLA’s regional representative for Shropshire says the figures are being reflected in the county.

"The results from ARLA which show that the demand has significantly soared is not only the picture across the UK but also the picture here in Shropshire too," Dawn says. "Our lettings department has been extremely busy and cannot get enough properties quick enough for the tenants needing them.

"We have seen many landlords who had a vast portfolio of buy to let properties decide to sell them. However some of them have since seen the demand and decided to put them back into the rental market.

"If people have money to invest, the property market is certainly one to think about at the moment and these figures back that up. If someone has a house to let, it is often let before any marketing of that property is carried out as we have people waiting for such properties."

She urged Buy To Let investors to invest their money to take advantage of the decreasing stock levels available after the report found that the number of landlords investing in property shrunk by eight per cent in the last quarter, from 35 per cent to 27 per cent.

At the same time, the number of landlords selling their Buy To Let property increased by five per cent from 27 per cent to 32 per cent.

As a result, the relationship between buying and selling has reversed, with the number of landlords selling property now exceeding landlords buying property for the first time in four years.

Nock Deighton has offices in Ironbridge, Ludlow, Telford and Bridgnorth. For information or advice call the lettings team at Telford on 01952 290 163.