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Rent Levels May Soon Stabilise, says ARLA
Monday, April 30, 2012
Signs suggest that rental prices in the Private Rental Sector
(PRS) could be levelling out, according to letting agents.
Latest data from the Association of Residential Letting Agents
(ARLA) shows that in the first quarter of this year, 50% of its
members reported increased achievable rent levels, in line with
news of rising rents across the UK. However, the percentage of
members reporting this has fallen from 60% nine months ago,
indicating that a downward trend is being
established.1
Over the same timeframe, the average void period - the length of
time for which a rental property is un-tenanted- rose for the
second successive quarter, to an average three weeks.
ARLA members also reported a decline in the number of new
tenancies being signed, a factor which, although not unusual for
this time of year, may also indicate decreasing demand from
tenants, or be a reflection of their inability to afford the rents
being charged. It could equally be nothing more than the effect of
tenants staying longer in their property
Tim Hyatt, ARLA President, said: "Our data suggests that things
could be changing in the PRS as the amount being charged for rent
is beginning to stabilise in some parts of the UK. This could be
due to a number of factors, including an increase in haggling
forcing rent levels down.
"Our members also report a decline in the number of properties
coming onto the rental market because they can't be sold,
suggesting that the initial boom in 'reluctant landlords' joining
the PRS is coming to an end.
"However we know anecdotally that this is by no means a
consistent picture across the UK, as there is still a huge demand
for rental property in some parts of the country. Ultimately, the
key challenge of undersupply has not been solved and there is still
a need to provide the right housing, in the right places, across
the wider housing market."
ENDS
Editor Notes:
1The data from the ARLA Members' Survey of the
Private Rented Sector, covering Q1 2012, was drawn from 726 member
offices. Together with the ARLA Survey of Residential
Investment Landlords, March 2012- conducted among 1,505 landlords -
the report forms the ARLA Review and Index. The Review and Index is
available at http://www.arla.co.uk/buy-to-let/buy-to-let-review/2012/
All other ARLA surveys and statistics can be downloaded from http://www.arla.co.uk/
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.
Members regulated by ARLA and NAEA, can as a member benefit,
advertise their property for sale or to rent on the PropertyLive
portal www.propertylive.co.uk
For further information contact:
ARLA PRESS OFFICE
Tel: 020 3128 8181
E-mail: press@nfoppmedia.com