Figures show Demand for Private Rental Sector Property is Falling

28 January 2012 Categories: News

According to a report released by the Association of Residential Letting Agents, also known as ARLA, the demand for private rental sector property forlandlords fell significantly during the 4th quarter of 2011. ARLA members reported that although demand is still high – with 55% of members reporting a larger number of tenants than available properties – it had reduced significantly from the 74% in quarter 3 of 2011.

It is possible that this fall was due to the holiday season during which very few tenants feel the need to look for a new property. It could also be however that the demand for private rental sector property has peaked. The rise in the average rent price over the last 12 months has forced a large percentage of private tenants to stick with what they have, even though this has led to rental arrears in a growing number of cases.

When asked about the downturn in demand for private rental property Tim Hyatt, President of ARLA was non-committal with regards to the possible cause, saying “We will be watching the market closely in the coming months to determine how significant these latest figures will prove to be.”