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Landlords buy to let insurance: Rental housing shortage worsens
16 Jul 2010
Landlord property insurance customers could be affected by a worsening housing shortage, according to research out today from the Association of Residential Lettings Agents (ARLA).
Seventy per cent of ARLA member offices said that there are more tenants than available properties. Last quarter, just 59 per cent of members said the same, with a mere 24 per cent saying so in September 2009.
Ian Potter, operations manager of ARLA, said that there had been some evidence of the usual spring rise in the number of rental properties on the market, but not enough to counteract the problem.
"This situation has been deteriorating rapidly ... the supply and demand of homes to buy is also swinging out of kilter - making the prospect of a severe rental housing shortage ever more likely," he added.
ARLA's findings are corroborated by the results of a recent survey by letting agent network LSL Property Services, which suggests that the average cost of renting a home is at its highest level since November 2008. The average rate rose for the fifth consecutive month in June by one per cent to £673 a month, driven by a shortage of properties, the firm said.
Posted by Dan Winters
