The latest research by the Association of Residential Letting Agents (ARLA), shows the cost of renting PRS property in the UK finally appears to be stabilising.
Despite the huge demand for rental property in many areas of the UK and media reports of rising private rented sector rents as landlords attempted to cash in on the demand for property. ARLA research now suggests that the amount of rent being charged by landlords and property management agents is now beginning to stabilise as sensibility takes over from greed.
The stabilisation of residential property rental prices could potentially lead further people to turn to the PRS lettings sector for housing, where demand for residential property suitable to rent already outpaces the supply.
There are many reasons that Private Rented Sector (PRS) renting has followed the European trend and become an attractive option for the masses in the current economic climate.
- Landlords are able to ensure the rent and secure their income by utilising specialist Rent Guarantee insurance.
- Landlords can Reference Tenants and check their credit history before granting a tenancy
- Young professionals searching for jobs must be prepared to move in an employment market that demands flexibility.
- Renting is a viable option for people living in and around areas of prime real estate, such as London or around any other of the major city centres in the UK.
- Many tenants see no point in purchasing a property to set up home when they may have to move again due to employment or economic issues.
- First time buyers (FTBs) face the difficult task of being accepted for mortgage finance and raising a suitably large deposit.
The high deposits required for residential property mean that the demand for rental property has increased. Many potential first time buyers are struggling to get their foot on the property ladder because of this and don’t want live with family.
Renting residential property in the UK offers a perfect all round solution for landlords and tenants and reflects the current European trend in property ownership and rentals, where the majority are tenants living in rented accommodation.
Tenants don’t feel tied into a long term commitment and wish to be able to move home easily and tenancies can be shared by working friends or like-minded people.