New survey shows rental market could be levelling out

08 May 2012 Categories: News

New survey shows rental market could be levelling out

A new survey conducted by ARLA, the Association of Residential Letting Agents, has indicated that rental prices within the private rental sector may by levelling out. The survey, which quizzed 726 letting agents and over 1500 landlords, showed that only 50% of respondents reported an increase in their achievable rent level over the first three months of the year – 10% less than this time last year.

It also emerged that the average void period has increased to 3 weeks and the number of new tenancies being signed is reduced. ARLA believe that the new figures indicate tenants staying in properties for longer periods of time, however some experts say it could be an early warning that property demand is falling, or worse still it could mean that a growing number of tenants simply can’t afford to pay the rents being charged.

President of ARLA Tim Hyatt commented on the findings saying; “Our data suggests that things could be changing in the private rented sector as the amount being charged for rent is beginning to stabilise in some parts of theUK. This could be due to a number of factors, including an increase in haggling, forcing rent levels down.”