Oversupply of buy to let homes 'decreasing'

28 September 2009

Written by Michael Aglony

After a period of property oversupply in the rental sector, it appears that the situation for buy to let professionals is changing for the better.

Research from the Association of Residential Letting Agents (Arla) has also found that more tenancies were confirmed in the third quarter of the year, compared to the previous three-month period.

Meanwhile, 33 per cent of Arla members questioned for the survey indicated that they think supply and demand of rental property is in balance - a figure that is up 14 per cent on the one recorded in the second quarter of the year.

Operations manager at Arla Ian Potter commented: "This shift in the balance of supply and demand is extremely significant for the private rented sector."

It is further evidence that the property market as a whole is improving, he added.

Various reports since the start of the year have spoken about a rise in so-called accidental landlords - the name given to homeowners who planned to sell their properties but opted to rent them out due the deflated marketplace.

However, with reports of property price rises and the recent publication of the Arla data, it would seem that this phenomenon is no longer such a prevalent factor in the UK buy to let market.

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