Increase in supply of rental housing

In their monthly private rented sector report for July  the Association of Residential  Letting Agents noted an increase in the supply of rental housing, however the demand dipped. A third of ARLA agents expect supply to continue to increase over the next five years, rent increases last month were seen by two fifths of letting agents.

Some form of balance is now being seen between supply and demand in the rental sector, demand across the UK has decreased slightly this month, with an average 35 prospective tenants registered per ARLA branch in July, compared to 36 in June. However, demand in London has continued to rise, with 40 prospective tenants registered per branch in July, compared to 36 per branch last month.

According to ARLA 35% of their agents expect the supply of rental properties to continue increasing over the next five years.  The East of England is most optimistic, with over half of agents in the region (53%) predicting supply will continue to rise. However, only 15 per cent in the south West and 16 per cent  in Yorkshire and Humberside predict continuing growth of housing stock for tenants.

The good news is that a third of ARLA agents (35%) expect the supply of rental properties to continue increasing over the next five years. The East of England is most optimistic, with over half of agents in the region (53%) predicting supply will continue to rise. However, only 15 per cent in the south West and 16 per cent  in Yorkshire and Humberside predict continuing growth of housing stock for tenants.

David Cox, managing directorof ARLA says: “To finally see a rise in available rental properties is definitely a step in the right direction; although with demand remaining the same, we still have a long way to go in achieving a balanced and stable private rented sector. Following the changes to pensions made in April, the fact that a third of agents are predicting supply will continue to increase over the next five years could be a result of people releasing equity from their pensions to invest in the buy-to-let market.

“It’s clear from this month’s findings that the growing gap between supply and demand is an issue still rife in the capital; which doesn’t look to be improving any time soon. With the cost of renting continuing to rise month by month, it’s a worrying state of affairs for those hoping to save for their first house and just pushing the aspiration of owning a home further out of reach.”

The July report in full can be seen on the ARLA website. http://www.arla.co.uk/info-guides/monthly-arla-private-rented-sector-report/

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More