25/01/2010 - Increase in 'reluctant tenants'
Demand for rented accommodation is rising as people struggle to find properties to buy, leading to demand for rented homes to outstrip supply.
The so-called "reluctant tenants" who struggled to find a property or a mortgage is leading to a situation where the number of homes available to let is falling, according to the Association of Residential Letting Agents.
In the final quarter of 2009, around 41% of letting agents said there were more potential tenants that properties, compared to 24% during the quarter to the end of September.
The situation is a marked turnaround from early last year, when the rental market was flooded with properties from so-called accidental landlords, as people who had been unable to sell their home while house prices were falling, were forced to rent it out instead.
But the number of accidental landlords has fallen in recent months as the property market has picked up, enabling them to sell their homes.
Ian Potter, operations manager at Arla warned that, while the private rented sector would be key to meeting the accommodation needs of future generations, it was likely to struggle without significant Government support.
Copyright © Press Association 2010
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