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'RELUCTANT TENANTS' ARE ENTERING THE HOUSING MARKET (Renting - House / Flat)
by administrator 
, Monday, February 01, 2010, 04:18
The UK housing market is experiencing a trend of 'reluctant tenants', following a shift in supply and demand for properties, according to the Association of Residential Letting Agents (ARLA).
ARLA's research, conducted across UK letting agents and landlords, reveals that the surplus of rental property is reducing, while demand for properties rises.
According to ARLA, this shift has generated a wave of reluctant tenants. During Q4 2009 an average 41% of members surveyed reported more tenants than properties - compared with just 24% last quarter. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.
Ian Potter, operations manager at ARLA, said "New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And 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.
"This rise in tenants is a positive sign for the industry, as it indicates increased market movement. It also shows that many more people will learn the benefits of living in rental accommodation.
"However, as demand exceeds supply we are faced with a new challenge - how to provide enough good-quality rental properties to meet this demand. These figures confirm our long-held view that a strong Private Rented Sector (PRS) will be fundamental in meeting the accommodation needs of future generations. But without significant government support, the sector will likely struggle."
Simon Gordon, Head of Communications, National Landlords Association, said: "These figures may show some tenants are reluctant to rent, but that doesn't reveal the true story. Renting is no longer the ugly sister of the property market. In fact, increasing numbers are attracted to renting, as a simpler, more flexible alternative to home ownership.
"Gone is the view that renting is the only option for those who can't afford to get on the property ladder. Nowadays there are property savvy renters who prefer not having to worry about home repairs or concerns about making ends meet with potentially volatile interest rates."
