The level of supply in the private rental sector is showing signs of improvement, according to the Association of Residential Letting Agents (ARLA).
However, despite an increase in available buy-to-let properties on the market, consumers will still face fierce competition for rental property as the level of demand remains high.
The average number of buy-to-let properties managed by licensed ARLA members climbed almost 10 per cent in the last three months.
Members believe the number of landlords increasing their investment in buy-to-let properties was driving the improved outlook for supply in the private rented sector, with the number of landlords buying properties now exceeding the number selling – a reverse on figures reported three months ago.
Tenants are also taking advantage of the slightly less competitive market, with a reported increase in tenants haggling with landlords over rent.
David Cox, managing director of ARLA, comments: “This quarter we’re seeing promising signs that the market is taking small steps towards achieving a better balance between supply and demand, or at least it is easing slightly. With more landlords investing in their portfolios, ARLA Licensed members have reported a growth in supply, while the level of demand witnessed last quarter has fallen slightly. Of course, the market has a fair way to go in terms of completely balancing out.”
The increase in supply is down to more investment in buy-to-let property; however a number of ARLA Licensed members also reported an increase in rental property coming back onto the market following failed attempts to sell, rising for a second consecutive quarter, from 16 per cent to 24 per cent.
