Rental supply has plunged by 20 percent in the last quarter due to the market going through a sharp correction in the balance of supply and demand, according to figures from a leading lettings chain in the UK.
Over the last two years there has been a surfeit of properties and falling rents, but the picture appears to be changing rapidly.
Countrywide Residential Lettings (CRL) surveyed more than 200 of its offices, and in the three months to October it found that the number of new tenant inquiries increased by 11 percent whilst the number of new rental properties fell.
The survey revealed that the south-east region has the highest proportion of new tenant inquiries, with 3.3 tenants vying for every new property that enters the market.
John Hards, co-managing director of CRL, said: “The rental market is now in the midst of a correction as the excess supply of properties brought on by the downturn in the sales market is disappearing and rental stock is coming under increased demand from the growing number of tenants.
“The rental market is at a crossroads: the economy is fragile and unemployment is still rising. However, we are already seeing the first signs of rent increases due to strong tenant demand, and this looks set to continue.”
London agent WA Ellis has also reported fewer rental properties available compared with demand, whilst nationally, Your Move is also looking for more rental stock.
• The housing standards team at Bath and North East Somerset Council has said it will not prosecute residential landlords for failing to licence a House of Multiple Occupation (HMO) if they apply before 1 January 2010.
But the team has warned that action will be taken against any landlords in the council area found to be in control of an unlicensed HMO after this date.
So far Bath and North East Somerset Council has licensed more than 300 HMO properties but is concerned that there may still be undiscovered unlicensed properties out there.
Cllr Vic Pritchard (Conservative, Chew Valley South), Cabinet Member for Adult Social Services and Housing, said: “Bath and North East Somerset believes that landlords have a responsibility to protect the safety of their tenants.
“Making sure that they have the correct licence in place is an important part of this. By giving people a window of opportunity to come forward now we hope to get all multiple occupancy properties in the area properly licensed.”
The Housing Standards team is working to identify unlicensed HMOs in the Bath and North East Somerset area. When an unlicensed property is found, evidence is also collected for a prosecution. If a successful prosecution is taken a landlord can be fined up to £20,000.
