Rental Property Shortage Approaching

I have some more information that John Dallas my good friend from Glasgow has asked me to pass on. Enjoy...

Rental property shortage approaching

The recent ARLA quarterly survey suggests that with house price inflation continuing, the rents achieved by landlords have also risen accordingly.  A healthy balance between supply and demand is reported almost nationwide. There is a 33 per cent each way split between members with more tenants than properties, more properties than tenants, or an ideal balance, suggesting that supply and demand have reached a state of equilibrium at the moment.

Even during in the traditional quiet summer months, the level of new tenancies arranged increased by 10 per cent, with the average void remaining steady at 27 days.

Chief executive Adrian Turner pointed out the situation needs careful monitoring “This very healthy balance between supply and demand could well indicate that it may not be long before there is a shortage of property in the private rented sector. If we cannot maintain a degree of surplus capacity, the rental market could need additional property very urgently”

Mortgage lending up

Figures from the Bank of England show that the number of mortgages approved in August leapt to its highest level since June last year. Mortgage approvals rose from 99,000 in July to107,000 in August.