The level of supply in the private rental sector is showing signs of improvement with an additional 10 per cent of stock over three months ago.
The Association of Residential Letting Agents' latest quarterly report reveals an increase in the average number of buy-to-let properties managed by ARLA-licensed members in the last three months, from 135 properties 148, representing an increase of almost 10 per cent.
The association claims that landlords buying more buy-to-let properties was behind the supply increase, with the number of landlords purchasing properties now exceeding the number selling their investments - a reverse on figures reported three months ago.
Those landlords increasing their investment in buy-to-let properties rose from 27 per cent to 30 per cent in the last three months. Meanwhile landlords looking to sell their current buy-to-let investments fell from 32 to just 23 per cent.
ARLA says that although the increase in available buy-to-let property is a step in the right direction for the private rental market and good news for renters, the bad news is that demand still strongly outweighs supply.
Some two thirds of member agents say there were still more would-be tenants than properties available on their books, a decrease from 68 per cent last quarter, suggesting that the market could be heading towards a more level playing field.
As supply and demand levels ease, tenants are taking advantage of the slightly less competitive market; the number of would-be tenants haggling with landlords over rents increased from 32 per cent to 35 per cent over the past six months.
Comments
[i]"the bad news is that demand still strongly outweighs supply. "[/i] Why is this [b]bad [/b] news Sorry but this is a fundamental positive in most businesses Am I missing something