» Read the complete article

The residential rental market is beginning to stabilise with property oversupply decreasing across the UK and the number of new tenancies increasing.

According to the Association of Residential Letting Agents, the historical decline in numbers of tenants, which led to a surplus of properties to rent, is coming to an end. In fact. 83% of ARLA members signed up 10 or more tenancies during the last quarter, compared to 79% three months ago.

Almost a third of members surveyed felt that supply and demand of properties is in balance; this compares with just 19% last quarter. Ian Potter, operations manager of ARLA, says: "This shift in the balance of supply and demand is extremely significant for the private rented sector. It gives further evidence to suggest that the property market as a whole is getting back on its feet.

"This shift also indicates that confidence is rising among prospective tenants; it seems that people who delayed setting up home 12 months ago, now feel secure enough to proceed. Equally, those who historically have shared a rental property seem happy to set out independently."

In addition, the number of members who believe that there are more residential properties available for rent than there are tenants to fill them dropped significantly in the three month period, from 70% to 43%.

This latest ARLA research also showed that the average void period of a rental home has dropped for the first time in more than a year, indicating that properties are being rented more quickly – things are certainly on the up for those with buy-to-let investments.

Now the ice is thawing on the economy and people are beginning to rent and move again, it might be time to reassess your mortgage and your finances. Talk to a mortgage specialist today about a new loan that could improve your buy-to-let profits.

SOURCE: ARLA, 28/09/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog