Expert predicts possible increase in lettings competition
News Category: Industry News
Published: 02-Apr-2009
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A representative from the UK's letting agent regulatory body believes there is a possibility that there is going to be a more competitive rental market in the near future.
Ian Potter, operations manager for the Association of Residential Letting Agents (Arla), said that "serious investors" in buy-to-let property will be doing their research on regional trends before purchasing new bricks and mortar.
Explaining the current situation, the Arla boss indicated that different areas of the country are seeing oversupply of certain properties. However, he suggested that does not mean it is the same nationwide.
"You've got places like Leeds, where there is an oversupply of two-bedroom, new-build, flats," said Mr Potter. "But it doesn't mean that in Surrey there's not a shortage of two-bedroom flats on the rental market."
Arla's most recent members' survey found that the return on flats across the UK was unchanged in the first quarter of 2009, when compared with the final three months of last year. The return on houses was slightly down - from 4.9 per cent to 4.8 per cent.
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