ARLA warns of rental famine after sales feast

The Association of Residential Letting Agents says the number of accidental landlords' - those who let properties they have not been able to sell - is now falling sharply.

ARLA's latest quarterly report says the percentage of agents seeing an increase in rental property entering the market because it cannot be sold has fallen to just 13 per cent - the fourth consecutive quarterly fall and leagues below the 94 per cent recorded when the question was first asked by ARLA at the start of 2009, at the depth of the downturn.

The buoyant sales market means that the number of letting agents believing landlords are considering selling one or more of their properties has risen from 15 per cent to 20 per cent. But the share of agents believing landlords will buy more BTL properties is remaining roughly static (42 per cent now against 43 per cent last time).

The association's latest statistics show that Buy To Let is considered a very long-term investment by most landlords. The average time between purchase and sale now stands at 19.8 years; back in early 2009 it was 16.4 years, possibly indicating how few landlords (accidental or otherwise) sold during the lean years in the sales market.