Ian Potter, operations director, said: "The lack of new rental stock for the private rented sector was the dominant factor in the market last year, and will continue well into 2012 because of the broader issues of diminishing housing supply and lending drying up,"
Agents, always the optimists........
Discounted landlord insurance quote
I am a letting agent in Gloucestershire and I certainly feel that demand will remain greater than supply for a good time yet - although it is a generalisation to say demand will continue across the entire range of stock and the entire country. Until affordable mortgage finance becomes available and there is a whiff that house prices will start lifting, I cannot see new rental demand dropping significantly.
ReplyDeleteWe also have investors purchasing more properties now which, although leads to some increase in supply, (though generally less numbers than those landlords leaving the sector), keeps first time buyers out of the marketplace and therefore with renting as their main alternative option.
Also don't forget that, in our experience, existing tenants are also staying longer, which also reduces supply.
My only plea to landlords is that when they read these survey results and think that rents are rising, they have to appreciate that the property they let for £x 2 years ago is not the same as the property they want to let now for £x + £y if they haven't spent any money on it since! If the property is in the same condition now as then, then yes, they should get more rent, but if it now needs refreshing or redecoration and hasn't been then don't expect something for nothing.