Homebuyers are not the only ones who face competition when looking for a new place to live, but while the market is becoming more favourable for those who are planning to buy their new homes, the competition is becoming fiercer for those looking to rent. While potential buyers are seeing increasing numbers of homes on the market, at the same time as the number of competing buyers has declined, the number of properties that are available to rent seems to be declining.
The Association of Residential Letting Agents has reported that there is a significant shortage of rental properties, with many more people looking for new rentals than there are properties available. According to a survey conducted by the association, 68% of agents across the country had found that the number of people seeking to rent had grown larger than the number of properties available during the third quarter of the year. The shortfall of rental properties has been growing worse since the beginning of the year, largely because of a decline in the number of properties available to rent.
In the last three months, the number of rental properties being managed by members of the ARLA has dropped by about 6%. The average letting agency now manages about 135 properties, while three months ago the average was 143 homes. Many of the properties that have been taken off the rental market have been put up for sale by their owners, who are seeking to cash in on the better prices that are currently available. Almost one in three landlords are currently selling at least one of their properties. More rental properties are being sold than there are properties being bought to let, resulting in an overall decline in the rental market, despite the growing number of people who are looking for rental properties.
The growing number of landlords who are putting their properties up for sale is good news for anyone who is hoping to buy a new home, since it has contributed to the increasing number of properties on the market, reducing the competition between buyers. However, those who are planning a move into a new rental property may find it harder to get the home that they want.