Reluctant landlords begin slow exit from private rented sector

by Mark Alexander

11:28 AM, 20th September 2013
About 5 years ago

Reluctant landlords begin slow exit from private rented sector

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Reluctant landlords begin slow exit from private rented sector

Latest ARLA research also shows regional variation in tenant demand.

The number of reluctant landlords in the private rented sector (PRS) is falling*, according to research from the Association of Residential Letting Agents (ARLA).

Over the past three months, ARLA member offices have reported a decrease from 26% to 21% in the proportion of rental property coming onto the market because it cannot be sold. This also represents a sharp drop of 21% on the figure of 42% recorded last year.

As these reluctant landlords stop entering the sector, tenants are still faced with strong competition for rental homes. 52% of ARLA members said there were more tenants than properties available. While this represents an incremental fall on tenant-property ratio from the 54% recorded in the previous quarter, this statistic shows that PRS accommodation remains in high demand.

The South East (excluding London) has the highest proportion of members reporting more tenants than properties (67%), whereas London, surprisingly, has the lowest, with just 17% experiencing this trend.

Despite this competition among tenants for properties, there has been an overall fall in the number struggling to meet rental payments. The current figure of 35% remains high, but represents a fall of 5% from the figure of 40% recorded at the same time in 2012.

Ian Potter of ARLAIan Potter, Managing Director, ARLA, said: “Much has been written recently about the recovery of the residential sales market, and it would appear that these effects are now being felt in the private rented sector. While the departure of ‘accidental landlords’ from the sector will be a good thing for the individuals concerned, there is a real and ongoing worry about the level of rental properly supply across the country.

“With competition for the best properties remaining fierce, landlords and tenants alike can benefit hugely from seeking the advice of an ARLA agent. All ARLA licensed agents must adhere to a strict code of conduct, as well as offering client money protection and redress schemes, which protect all parties if things go wrong.”  

It may not be practical or desirable to manage your own properties for the reasons listed below if ….

  • you are new to being a landlord and fearful of getting things wrong
  • your time is more valuable to you
  • your properties are located inconveniently for you to arrange viewings and meet with tenants as required
  • you prefer to distance yourself from the management of your property portfolio and relationships with tenants.

If any of the above apply to you then a fully managed service might be better suited to your needs. See the letting section of this website or complete the form below for more details of the ARLA agent recommended by Property118. Property Management is available for a little as £14.99 per month + VAT.

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