BUY-to-let could see a renaissance as supply and demand problems become more acute.
The availability of rental properties is worsening, according to research out today from the Association of Residential Letting Agents.
Covering the second three months of this year, the latest quarterly survey shows that 70% of ARLA agents claim there are more tenants than properties available. This is an increase from 59% on the first quarter and compares with 24% last September.
In the South East, 76% of member offices report more tenants than properties.
Ian Potter, operations manager of ARLA, said: “This situation has been deteriorating rapidly in recent months, as the supply and demand of homes to buy is also swinging out of kilter – making the prospect of a severe rental housing shortage ever more likely.
“In his Budget, the Chancellor did little to incentivise investment in the private rented sector. In fact, the rise in capital gains tax may actually discourage potential landlords from investing.”