Despite the continued lack of financing for buy-to-let mortgages, HomeLet has reported that letting agents are more optimistic about the future of the market than they were almost a year ago.
HomeLet, the tenant referencing and specialist insurance provider to the lettings industry, conducted an independent customer satisfaction survey in December 2009 which revealed that 98% of agents expect the lettings market to stay the same, grow or grow substantially in the next 12 months. This is up by 12% on January 2009.
This figure reflects the results of recent research by ARLA which revealed that the surplus of rental property is reducing, while demand for properties is rising.
According to ARLA, this shift has generated a wave of reluctant tenants. During Q4 2009 41% of members reported that there were more tenants than properties – compared with just 24% in Q3 2009. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.
The rise in tenants and the downturn in supply is likely to result in rental price growth which is a positive sign for the lettings industry.
HomeLet’s managing director John Boyle, said: “Demand for rental properties will remain strong over the next few years as first-time buyers continue to find it difficult to obtain mortgage finance.