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Tenant demand outstripping supply – Rents increase

Demand for residential rental properties is increasing rapidly through much of the UK, particularly in prominent cities in The South such as London, Oxford and Bath.

The Association of Residential Letting Agents (ARLA) recently published their Review and Index for Residential Investment for the first quarter of 2010 (ARLA Review and Index Q1 2010). ARLA carried out research among 531 of its members’ offices plus 382 individual landlords. The results show that during Q1 2010, two thirds (59%) of ARLA member agents reported more tenants than properties available. This is a 50% rise on the last quarter (41%) and in Q3 2009 the figure was just 24%. In the last year, supply has dropped by approximately 60%.

Tenant demand has never been higher in Bath which is clearly shown by the rents we have recently achieved and the short length of time that properties are on the market. In April alone Reside let a number of properties before we began to market them; The Old Vicarage, Winifreds Dale and Walcot Parade were all let before they came to the market, all at very good rents. A house on Great Pulteney Street was let after only 4 hours on the rental market at £3000 pcm and just today a one bedroom apartment on Great Pulteney Street achieved a rent of £925 pcm after only 3 days on the market.

Countrywide’s lettings division recently surveyed its network of 204 UK branches and found that there is now an average of 4.9 tenants for every available property, and rents have increase by 2.5%.

From five bedroom houses to one bedroom apartments, rental properties are in very high demand. If you are a landlord or are considering renting out your property, there couldn’t be a better time to take advantage of Resides superior service!