Private rented sector ‘to continue expanding into 2012’
The demand for rental property will continue to outstrip supply until at least next year, according to research by the Association of Residential Letting Agents (ARLA).
Its operations director, Ian Potter, said: “The lack of new rental stock for the private rented sector (PRS) was the dominant factor in the market last year, and will continue well into 2012 because of the broader issues of diminishing housing supply and lending drying up.
“The Leader of the Labour Party, Ed Miliband, recently flagged research that shows 41% of young low-to-middle earners live in privately rented accommodation compared with 14% in 1988. This trend looks set to continue while mortgages are so hard to come by and the capital barriers to home ownership appear so entrenched.”
A survey carried out by ARLA found that 59% of its members believe that the demand for rental property will outstrip supply this year and into 2012.
Mr Potter said: “The PRS is taking on the burden created by diminishing housing supply – a trend that will continue for the short to medium term.
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