Rental demand to be 'offset by availability of accommodation'

News Category: Industry News

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The growth in demand for rental property is set to be curtailed by the rising number of homes for rent available, it has been claimed.

Recently, the supply of property for rent on letting agents' books has been buoyed by homeowners who are struggling to find a buyer for their property and are opting to rent out their home instead.

Meanwhile, the difficulty being experienced by would-be buyers in securing mortgage finance has buoyed demand for rental accommodation.

Tom Entwistle, editor of Landlordzone, said the effect of these developments would mean that although demand for rental accommodation will continue it will be offset in part by the higher number of properties on the market.

He said: "On the one hand, the demand is there because young people can't get into the market, but the supply has increased slightly because people are finding it difficult to sell and there are quite a lot of people now considering letting a property that probably wouldn't have even considered it before.

"The demand for rentals is going to be maintained but I can't see it going through the roof and expanding too much."

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