Rental demand up by 31% in January

Rental demand up by 31% in January

According to new research by property body ARLA Propertymark, there was a 31% rise in demand for rental property from December 2016 to January 2017. Some of this can be put down to people putting off decisions until the new year, but overall it still shows the underlying trend that demand for rental properties is going up. Over the course of 2016, ARLA has seen this demand rise by 10% despite the limited levels of supply.

The lack of supply to meet the demand will inevitably lead to rent rises according to ARLA. David Cox, CEO of the organisation, said: “when supply and demand are out of kilter, it’s only natural that rent prices will just continue to rise.”

ARLA’s report comes shortly after the government’s white paper about housing which stressed the need for significantly more investment in the purpose-built rental sector. Tenants are crying out for affordable rental property and recent tax reforms by the government, aimed at slowing down the amount of buy-to-let investment, is clearly geared towards new build-to-rent projects getting off the ground.

Will build-to-rent be the saviour of the UK housing crisis?

The government thinks it has a big part to play so it will be interesting to see how this takes shape over the next 12 to 18 months.