Property news from PWR Letting Agents Nottingham and Mansfield

ARLA Quarterly Review

There is not enough rental property to meet consumer demand in the UK - and the situation is worsening, according to the most recent research from the Association of Residential Lettings Agents (ARLA).

Insufficient supply of good quality property means that the private rented sector (PRS) is struggling to meet demand.　 With the PRS picking up the slack from the housing market, ARLA believes that the next Government must focus on averting the sector from crisis.

"More than two thirds of our agents have seen demand outstrip supply across the country - there simply isn't enough housing stock coming onto the rental market. The Government's move to help first time buyers by raising the stamp duty threshold was a step in the right direction. Now we need to see tangible measures to support the PRS," said Ian Potter, operations manager of ARLA.

Investors need to be treated as businesses, with proper incentivisation to invest in and refurbish older properties. This will improve standards, help the environment with improving insulation, and encourage much-needed investment to help get the market back on its feet. Banks need to be told to be more flexible about the provision of finance for the Buy to Let sector which has fuelled the supply of good quality homes, and saved this government from an even greater housing shortage. Without these kinds of measures there is a serious risk that a shortage or rentals will create another form of housing crisis.

The research, conducted among UK letting agents and landlords, shows that during Q1 2010, two thirds (59%) of ARLA member agents reported more tenants than properties available. This is a 50% rise on the last quarter (41%) and in Q3 2009 the figure was just 24%.

The speed with which tenants are snapping up homes to rent is also telling - properties are vacant for an average period of just 3.6 weeks, which is down from 4.2 weeks at the same point last year.

PWR have seen high demand from tenants in the last three months in line with the ARLA quarterly review with over 50 properties let in February & March and nearer 60 properties likely to be let in April. The good news for landlords is that some rents seem to be edging up and if you are one of those landlords who have been holding off from investing in more property, now would be a good time to invest.

Some of our clients who have started buying again have been achieving yields ranging from 6%-9% gross, with the higher yields tending to come from terrace property and 1 bed flats.