Rental market demand rises

There has been a rise in demand in the rental market for the first time since the start of the recession, new statistics have shown.

The Association of Residential Letting Agents (ARLA) indicated that the rental sector is stabilising and more new tenancies are being agreed.

A surplus of properties available to rent has existed in the UK this year, but the organisation believes this is no longer the case.

In the last three months, 83 per cent of ARLA members have arranged ten or more new tenancies, a four per cent rise from the last quarter.

Ian Potter, operations manager of the organisation, said that the rental recovery could contribute to wider improvements in the housing market.

He commented: "This shift in the balance of supply and demand is extremely significant for the private rented sector.

"This shift also indicates that confidence is rising among prospective tenants; it seems that people who delayed setting up home 12 months ago, now feel secure enough to proceed."

The south-east has been singled out as the area where rental demand has risen most steeply.

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