ARLA reports rental supply drought in London

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Rental Supply:

Agents in London are reporting a critical shortage of rentals which ARLA Propertymark says are now 46% below the national average supply.

As landlords are increasingly priced out of the capital, with high prices correspondingly high stamp duty and yields, tenants are now finding stiff competition to secure rental properties.

In January, says ARLA Propertymark, “letting agents in London were typically managing 99 properties, compared to a national average of 184. It was also the lowest region for supply in December, but it stood at 130 then, compared to a national average of 200.[1]”

David Cox, Chief Executive, ARLA Propertymark comments:

“The rental market in London should be thriving – the capital is a hub for business and culture and attracts a huge influx of new residents every year. But the prospect of being a landlord is becoming less tenable, as potential buy to let investors are deterred by increased taxes and ever more complicated legislation – and higher property prices in London are making it becoming more and more difficult for landlords to make ends meet.

“Government policies designed to help renters now seem to be having the opposite effect, as landlords are moving away from using professional agents. This puts tenants at risk of falling into the hands of rogue landlords, or novice ones who don’t have any experience in the sector.”

[1] – Opinium Research carried out an online survey among 361 ARLA members, 68 of which were based in London, from 1st – 8th February 2018. ARLA Propertymark Protected letting agents were surveyed on a number of key rental sector issues including supply and demand, the management of BTL properties, and monthly rent prices.

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