Buy To Let Faces Severe Housing Shortage

The government may have improved the investing situation for first time buyers following the Budget Report, but increasing demand for rental property may be contributing towards a new housing crisis studies has found.

In the last quarter of 2010 alone, a survey conducted by the Association of Residential Letting Agents found that 59% of UK letting agents and property landlords across the UK has got more tenants than properties to let. That is a staggering increase of 50% compared to the last quarter of 2009 which saw only 41% of landlords with too many tenants.


But this is not all property advisors are worried lets…

Vacancy of property lets has dropped too with the average property remaining vacant for only 3.6 weeks compared to 4.2 weeks this time last year.

Analysing these statistics it is not surprising that the ARLA are now calling upon the government to switch their focus onto the Private Rental Sector in order to prevent a further housing crisis.

Without the support of the buy-to-let sector, the government would have long since fallen into another housing crisis, especially as they are still struggling to fulfil their new property development quota of 400,000 a year by 75%...

In their report the ARLA are asking the government to treat property investors like a business and supply them with adequate incentives to invest, refurbish and insulate older properties. By improving standards for property investment, the ARLA hopes this will inspire more property investors to transform older properties into suitable property lets and ensure there is enough housing stock to cope with increasing rental demands.

Original Article