Letting Agents see increased demand from “Reluctant Tenants”.
The UK’s private rental sector is experiencing an increase in “reluctant tenants” with research among landlords revealing that 54% believe consumers are being forced to rent rather than buy a property.
The Association of Residential Letting Agents (ARLA) believes new tenants include homeowners who sold their properties last year, either due to financial instability or a job move, are becoming “reluctant tenants” as there is a shortage of both properties for sale and affordable mortgages.
This increase in tenant demand is good news for letting agents with an average of 41% of ARLA members surveyed reporting more tenants than properties during the final three months of 2009, compared with 24% in the previous quarter.
In addition, the unoccupancy period of a property fell from an average of 4 weeks to 3.9 weeks at the end of 2009.
However nowadays, renting is becoming more of a lifestyle choice instead of for those who cannot afford to get on the property ladder, with renters not having to worry about home repairs and volatile interest rates. As demand exceeds supply, it is vital that the sector receives significant government support in order to provide enough good-quality rental properties to meet this demand.
When renting a property, it is important that both landlords and tenants take out the appropriate insurance policy to protect themselves and their property.