Following a recent statement issued by the Association of Residential
Lettings Agents (ARLA) commenting on the current buoyant market the lettings
industry is currently experiencing, according to one Lincoln-based lettings agency there has never been a better time to be a landlord – an opinion that would seem to be backed up by ARLA's recent statement.
Tim Clark, Managing Director of Lighthouse Property Services, has seen his business go from strength to strength in recent months, and this buoyant outlook looks set to continue as rental voids hit an eight-year low.
The Association of Residential Lettings Agents (ARLA) recently reported that the average void period – a key indicator of the buoyancy of the rental market – has fallen to its lowest level for eight years as demand for rental property remains high.
In a survey of ARLA’s members, the average void period has again fallen compared with the previous quarter from 3.6 weeks to 3.2 weeks and the average void period of the whole country is down quite sharply in its third consecutive fall.
“The demand for rental property continues to rise in Lincoln as more and more people struggle to get onto the housing market or find themselves unable to keep up with mortgage payments,” said Tim.
“As this trend looks set to continue we are looking forward to another record year in 2011.
“This statement from ARLA comes as no surprise to us, as it seems the demand for rental property is continuing to rise across the country.”
Lighthouse Property Services was established in 2001 and is a residential and student lettings agency operating in Lincoln. The company also offers UK buy-to-let and overseas investment opportunities.
So what did the ARLA Press Release say on the 6th October 2010?
Rental Demand Reaches Record High ‘Generation Rent’ must be given Regulatory Protection
The number of tenants seeking rental properties has reached an eight year high, according to research from the Association of Residential Lettings Agents (ARLA).
Letting agents from across the UK have reported a significant shortage of available rental properties as tenant demand far exceeds supply. Ian Potter, Operations Director of ARLA, said: “The market has bounced back in a way that no one could have predicted to levels of demand that have not been seen since the last century.
“More than 70 per cent of our agents have stated that consumers coming to their offices are being forced to rent because of the pressure exerted on potential home buyers.
This is real evidence of a generation forced into renting and the Government must recognise the need for regulatory protection for them.
“As a minimum this must include consumer redress through an Ombudsman and Client Money Protection similar to an ABTA Bond. Our members offer these benefits to the consumer be it a landlord or tenant.”
The levels of demand are the highest since the ARLA survey began nearly a decade ago and are more than double those experienced at the peak of the property boom in 2007.
Demand is highest in the south east of England where 81 per cent of agents have stated that there are more tenants than properties compared to 67 per cent in the rest of the UK and 73 per cent in Central London.
“It has to be hoped that this unprecedented growth in the rental market will attract much needed investment into the private rental sector as it copes with the huge surge in demand from a generation who cannot afford to buy,” explained Mr Potter.
“‘But we must ensure that Generation Rent’ receives as much help as possible from the Government to ensure the proper regulation of the sector.”
Notes: About ARLA’s research
The data from the ARLA Members’ Survey of the Private Rented Sector, covering Q2 2010, was drawn from 570 offices. The data from the ARLA Survey of Residential Investment Landlords, covering Q2 2010, was drawn from 302 landlords during June 2010. Together, these reports form the ARLA Review and Index. All surveys and statistics can be downloaded from www.arla.co.uk.
More information about ARLA
The Association of Residential Lettings Agents (ARLA) was formed in 1981 as the professional and regulatory body for letting agents in the UK. Today ARLA is recognised by government, local authorities, consumer interest groups and the media as the leading professional body in the private rented sector. ARLA is a sister organisation to the National Association of Estate Agents (NAEA). In May 2009 ARLA became the first body in the letting and property management industry to introduce a licensing scheme for all members to promote the highest standards of practice in this important and growing sector of the property market. Both ARLA and NAEA members are governed by Codes of Practice providing a framework of ethical and professional standards at a level far higher than the law demands, and both Associations have their own complaints and disciplinary procedures so that any dispute is dealt with efficiently and fairly.
See also: Buy to let Opportunity in High Wycombe