18 Jul

Property to rent situation expected to improve for landlords

Property to rent situation expected to improve for landlords

Landlords looking for property to rent in East Sussex and other areas of the country are likely to see the supply shortage continue in the short term, a buy-to-let advice site has claimed, but the situation will improve in the months to come.

This month, the Association of Residential Letting Agents (ARLA) said an undersupply of good quality property is threatening the UK rental market.

During the second quarter of 2011, three-quarters of its members said there were more prospective tenants than properties available. The figure for property to rent in London was even tighter at 82 per cent.

However, Chris Horne, editor at Property Hawk, said the undersupply is caused by more people choosing to rent, which is itself down to problems in the property buying market.

He said: "The problem - in terms of the amount of money invested into the area to fill the gap as more tenants are seeking rental properties - is obviously [the lack of] finance."

High borrowing costs mean it is still expensive for landlords to invest more in their portfolios, potentially leading to less property to rent in East Sussex and other parts of the country.

Mr Horne added: "In the short-term, I think there will be a shortage, but landlords will slowly plug the gap as long as there are not overly restrictive regulations."

Meanwhile, Darren Owen of Property & Finance Solutions said now is a great time for buying property with the intention of renting it out, so long as potential landlords have the capital to spend.

"The issue comes back to the finance because even people with capital don't really want to pay cash for a property; they want to obtain some sort of mortgage because the problem with property is that it is not a very liquid asset," he explained.ADNFCR-1222-ID-800625432-ADNFCR

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