Demand for rented properties seriously outstripped supply and rent levels rose during the three months to the end of May, according to the latest quarterly survey by the Association of Residential Letting Agents (ARLA) of its member letting agents. These results show the shortage of properties and the continuing need for investment in the private rented sector at all levels.
Rents rose for the fourth quarter running for each type of property, including detached, semi-detached and terraced houses and flats. As a result of increased demand, void periods have fallen to an average of 24 days.
Over two thirds of all agents in prime central London report rising rent levels. Half of the agents in the rest of the South East say the same and in the rest of the country the proportion of agents reporting rises rose from 33% to 35%. Seven out of ten prime central London agents say there are more tenants than properties. This is the highest figure seen since the ARLA surveys started six years ago. In the South East, 10% more agents report demand is outstripping supply and the proportion in the rest of the country with a lack of supply has also risen.
Commented Adrian Turner, Chief Executive of ARLA, "There is a shortage of all forms of housing in this country and these results show that the shortage of good quality property is also apparent in the rented sector. The average capital asset values of rented houses rose during the past three months by 2.2% in Prime Central London, 0.3% in the Southeast and, by contrast, fell by 3.9% in the rest of the UK."
