The Association of Residential Letting Agents (ARLA) has claimed that the housing market in the UK is experiencing a trend of ‘reluctant tenants’, following a shift in supply and demand for properties. It says that there is a surplus of rental property is reducing, while demand for properties rises.
According to ARLA’s research, conducted across UK letting agents and landlords, this shift has generated a wave of reluctant tenants. During Q4 2009 an average 41% of members surveyed reported more tenants than properties – compared with just 24% last quarter. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.
Ian Potter, operations manager at ARLA, said that new tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages.
He added: “This rise in tenants is a positive sign for the industry
