UK Landlords to gain from increase in demand

Landlords can expect to enjoy a profitable year, according to a report by the Association of Residential Lettings Agents (ARLA).

ARLA said that during the fourth quarter of 2009, some 41% of members reported more tenants than properties, compared to 24% in the previous quarter. ARLA's research also revealed that 54% of the landlords questioned believe that consumers are being forced to rent rather than buy property.

The Operations Manager at ARLA, Ian Potter, believes that new tenants include homeowners forced to sell-up due to financial instability or changing jobs. Mr Potter added:

"Many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages."

Mr Potter stated that the rise in tenants is a positive sign for the lettings industry, as it indicates increased market movement. He went on to say that many more people will learn the benefits of living in rented accommodation.

Despite this, ARLA have speculated that since demand currently exceeds supply the industry is facing the challenge of supplying enough quality rental properties to meet the growing current demand.