Landlords biding time as tenant demand remains strong

Buy to let landlords are increasingly opting to wait and see which way the market turns before making their next move despite tenant demand remaining high, the latest survey from the Association of Residential Lettings Agents (Arla) has shown.

The Arla study shows that 37 per cent of letting agents are witnessing shortages of rental property in their region, a figure which rises still further in prime central London and the south-east, but also reveals that landlord activity is becoming more muted.

Sixteen per cent of buy to let landlords sold property over the past quarter – down from 21 per cent – while 11 per cent bought new homes, a fall from the 16 per cent who did so in the last quarter.

"These latest figures confirm that the private rented sector will once again be the safety valve for a housing market worried by the current financial uncertainties and the softening of house prices," asserted Arla head of operations Ian Potter.

With new enquiries from first-time buyers falling for the 11th month in a row in October, according to the Royal Institution of Chartered Surveyors, it seems that demand for rented property will remain healthy for the foreseeable future.



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