Private Rental Sector Faces Severe Housing Shortage
The government may have improved circumstances for increased property investment by first time buyers, but growing demands for property lets could force the property market into another housing crisis.
According to research by the Association of Residential Letting Agents, during the last quarter of 2010 alone, 59% of UK letting agents and property landlords revealed that tenancy demands were outstripping their supply of property lets. This is an incredible increase of 50% compared to the end of 2009 which saw only 41% of landlords with too many tenants to supply properties for.
But this is just the tip of the iceberg…
Continuing in their research, the ARLA also divulged that the average property let is now only remaining vacant for 3.6 weeks – a fall of 0.6 weeks compared to this time last year.
Taking these figures into consideration it is not at all surprising that the ARLA are now pressuring the government to recognise the importance of the Private Rental Sector.
Without their support, the government would have long ago fallen into another housing crisis as they simply cannot fulfil their new property development quota of 400,000 a year. Only last year they managed to produce 100,000 properties – 75% less than they needed…
In a bid to prevent a new housing crisis in the buy to let sector, the ARLA are calling upon the government to treat property investors like businesses and supply them with enough adequate incentives to ensure that they want to invest, refurbish and insulate older properties.
By supplying investors such incentives – and thus improving the standards for property investment – the ARLA feels this will encourage more property investors to harness these older properties and transform them into properties suitable for buy to let. More importantly, should they achieve this objective, these older properties can ensure that there is plenty of housing stock to cope with increasing buy to let demands.
Related posts:
- Private Rented Sector Grows In Popularity By 4.1%
- Tenants scramble for property as rental shortage continues
- Rental Demand Reaches 8 Year High
- Housing shortage could provide investors with greater opportunities
- Private Landlords Encouraged To Fill Housing Gap
Tags: buy to let, first time buyers, property development, property investment, property investor, property landlord, property lets, rental property
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