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There is not enough rental property to meet consumer demand in the UK – and the situation is worsening, according to the latest research from the Association of Residential Lettings Agents.

While this is not an ideal situation for a nation so proud of home ownership it is a great opportunity for landlords to take the reigns and create more rental property by increasing their portfolios – and making themselves a tidy profit in the process.

Its research found that during the first three months of this year, two thirds of letting agents reported more tenants than properties available. This is a 50% rise on the last three months of 2009.

ARLA says insufficient supply of good quality property means that the private rented sector is struggling to meet demand. There simply isn't enough properties for people to rent in the UK. That means every landlord who decides to increase his or her portfolio is not only helping out Brits but is also taking advantage of a buoyant market.

A buoyant market is great news for holders of buy to let mortgages. It means that rents are higher nationally and it means that there is less chance of having an empty property for any given amount of time. ARLA says the speed with which tenants are snapping up homes has increased over the last year – properties are vacant for an average period of just 3.6 weeks, which is down from 4.2 weeks 12 months ago.

But Ian Potter, operations manager at ARLA says landlords can't do it alone: "Property investors need to be treated as businesses, with proper incentivisation to invest in and refurbish older properties. This will improve standards, help the environment with improving insulation, and encourage much-needed investment to help get the market back on its feet."

SOURCE: ARLA, 14/04/10

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