Rental demand rises

Buy-to-let property investors are benefiting from huge demand for rented accommodation.

That is according to the Association of Residential Lettings Agents (Arla), which says that landlords are benefiting by charging higher rents.

According to the organisation, two thirds of letting agents in prime central London say that they have more tenants than available rental properties.

In addition, 57 per cent of agents in the south-east report the same problem, while 37 per cent experience a similar thing throughout the rest of the country.

"This peak demand should come as no surprise," said Ian Potter, head of operations for Arla.

"It has been driven up by the many competing demands for rental accommodation and now we have softening house prices.

"Softening in the sales market is always a driver of further demand in the rental market," he added.

The survey also revealed that rents have increased significantly in London and the south-east in the last quarter, while 54 per cent of agents throughout the rest of the country reported the same.

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