Lettings market “reaches peak”

ARLA (Association of Residential Letting Agents) has claimed the two-month decline in rents could represent a turning of the tide, rman.co.uk reports.

Recent figures disclosed by the association showed tenant demand was down in the last quarter of 2011 for the second quarter in a row. Whilst initially attributed to the typical slowdown seen around the Christmas period, ARLA has now claimed it could mean that the rental sector has reached its peak.

If true, the news could mean that the influx of buy-to-let properties entering the market has established more of an equilibrium between the sales and rental sector. This might then alleviate the problems faced by tenants with a vastly over-subscribed lettings market.

It could also see average rents decline slightly as letting agents find demand for their properties levelling out.

Speaking to propertywire.com of the trend, ARLA’s president, Tim Hyatt, explained: ”The apparent drop in demand for rental properties could be due to the traditionally quiet pre-Christmas period.

“At the same time, it could indicate a reversal of the surge of new tenants who turned to the PRS when they could not afford to buy. We are reassured by the fact that the number of new tenancies is stable, but we will be watching the market closely in the coming months to determine how significant these latest figures will prove to be.”