5 September 2006

ARLA Members Survey Report Third Quarter 2006 115k

The steady growth of the private rented sector is reflected in the increase in lettings staff employed in the offices of member firms of the Association of Residential Letting Agents, ARLA. In just two years total lettings staff has jumped by nearly a quarter, up from 7,884 to 9,593, according to the latest quarterly survey of ARLA members released today, Tuesday, 5 September.

However, men working in residential lettings and property management are still heavily outnumbered by women, by a margin of more than two to one. It was notable that there was no regional divide. The leading role played by women in the lettings industry is evident in all parts of the country.

Commented ARLA Chief Executive, Adrian Turner, "It is disappointing that more men have not come into the industry. The future is bright for the private rented sector and it provides excellent career opportunities. Hopefully, as the sector expands as forecast, we will see more men looking to make a career in lettings.

These increased levels of staffing have come as the balance of supply and demand between potential tenants and rental properties continues to improve throughout the private rented sector.

In prime central London, more than six out of ten ARLA members report they have more tenants applying than they have properties available.

Notably, although the South East, excluding central London, has seen a marginal fall in the number of agents reporting greater demand than supply, agents elsewhere in the country reflect the demand in the capital. An additional seven percent of all agents away from London and the South East report an excess of demand over supply.

The number of agents reporting more tenants than properties is now at an historically high level since the question was first asked four years ago.

The latest survey also shows that achievable rents have increased along with asset values, although actual returns are down from 5.2% to 4.9% for houses and from 5.3% to 5.1% for flats.

ARLA members report increased achievable rent levels over the past six months on all types of rented property with a much higher proportion this quarter (56% compared to 47% in May) reporting this in prime central London. There was also a substantial increase in reports of higher rent levels in the rest of the South East while the figure for the rest of the country was little changed.

Said Adrian Turner, "Our members are positive throughout the country. This is despite fears of over-regulation and unnecessary bureaucracy that stems both from national government and the town halls. It is the agents' role to understand and work with the administration but whether they can reflect this need to their landlord clients remains an open question."

Away from prime central London, the majority of all tenancies, 84%, are Assured Shorthold Tenancies but in London a third of all tenancies fall outside the Housing Act and are let under contract law

The tenants stay in properties for an average of 15.6 months. This is by arrangement and regardless of the initial term arranged. The highest proportion of these tenants, nearly 40%, are aged between 23 and 30. A significant number, 27.5%, are in their thirties and more than 15% are in their forties. One in ten is over 50.

The full Third Quarter ARLA Members Survey can be downloaded below:
ARLA Members Survey Report Third Quarter 2006 115k

 

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