Rental demand reaches record 8 year high

Ian Potter, Operations Director of ARLA, said: “The market has bounced back in a way that no one could have predicted to levels of demand that have not been seen since the last century.

“More than 70 per cent of our agents have stated that consumers coming to their offices are being forced to rent because of the pressure exerted on potential home buyers.

This is real evidence of a generation forced into renting and the Government must recognise the need for regulatory protection for them.

“As a minimum this must include consumer redress through an Ombudsman and Client Money Protection similar to an ABTA Bond. Our members offer these benefits to the consumer be it a landlord or tenant.”

The levels of demand are the highest since the ARLA survey began nearly a decade ago and are more than double those experienced at the peak of the property boom in 2007.

Demand is highest in the south east of England where 81 per cent of agents have stated that there are more tenants than properties compared to 67 per cent in the rest of the UK and 73 per cent in Central London.

“It has to be hoped that this unprecedented growth in the rental market will attract much needed investment into the private rental sector as it copes with the huge surge in demand from a generation who cannot afford to buy,” explained Mr Potter.

“‘But we must ensure that Generation Rent’ receives as much help as possible from the Government to ensure the proper regulation of the sector.”

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4 thoughts on “Rental demand reaches record 8 year high

  1. Jim Parker

    I welcome the comments from the ARLA regarding Lettings Agents as more and more seem to be popping up with no experience or awareness regarding more than 50 peices of legislation that govern our industry. Landlords need to be protected but also need to have more training made avaliable to them to educte them as to their legal duties.

  2. Stephen Ludlow

    There is a common misconception that renting directly from a landlord is cheaper. As well as legislation, tenants need to know ‘what’s what’ if they do rent direct from a landlord – read more at http://www.ludlowthompson.com/property_news/Tips_for_renting_safely_in_a_busy_market/article.htm?id=844

    Other related articles –

    http://www.ludlowthompson.com/property_news/VIDEO_Rental_demand_inspires_sealed_bids/article.htm?id=851

    For interest, about rental demand in London –
    http://www.ludlowthompson.com/property_news/_bidding_war_for_London_places_to_rent/article.htm?id=833

  3. Major Landlord

    What self-serving rubbish!!

    I have never yet encountered a situation where landlords charge tenants more than agents do. Cost to rent through an agent typically includes charges for drawing up agreement, inventory check, check-in and check-out. I don’t charge for any of these things.

    Then there’s the service element: 1 have constant problems with agents who do little or nothing to market my property, leaving long voids. On managed properties, once they eventually find a tenant, I usually discover much later that the tenant has asked repeatedly for repairs to be done, and nothing is. Nor am I ever made aware of these problems until it’s too late. One tenant reported me to the local council in desperation, because the agent had steadfastly failed to rectify a faulty extractor fan, leading to mould problems. Thanks, agent – and I’m paying you for this?!!

    I now advertise my own properties for rent, as well as giving them to one or more agents. In the last 20 lets, only 2 were produced by agents.

    Increasingly often, prospective tenants ask me to reassure them that I am really the owner, and not an agent, as they are sick and tired of agents who charge too much and do nothing.

    And the only two tenancies that ever went badly wrong for me were both set up by agents.

    Yes, there are bad landlords – and recent regulation is gradually driving them out. But there many more bad agents: and they really need regulation as their unprofessional actions affect both landlords and tenants.

    Now, you were saying . . . . ????

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