2010 has been a challenging year for the UK property market with restrictive lending conditions and many people opting – or forced – to stay put. In the private rented sector (PRS) a major issue has been the lack of availability of properties to rent, with demand far outstripping supply.

This shortage of rental homes is likely once again to be an issue 2011 because of the broader issues of diminishing housing supply. There does seem to be a rise in so-called ‘reluctant landlords’ – homeowners who have to let homes they cannot sell – meaning new rentals have become available but nowhere near enough to cater for the demand out there.

Next year is also likely to see increased numbers of local authorities introducing selective licensing, enabling them to monitor and regulate local landlords. Yet this is an ineffective and inconsistent method of regulation, which fails to deter rogue activity. Far better would be a national licensing programme –similar to ARLA’s own licensing scheme – which would provide a consistent way of protecting both landlords and tenants rights and monies. Our scheme also means consumers are protected if a letting agent folds – which is far more likely in a post-recession climate. In the absence of a national regulation scheme, we’d urge landlords and tenants alike to only use an ARLA agent.

During 2011, and as long as the dearth in homes to rent lasts, it is also likely that tenants will have to make bigger compromises over the kind of rental homes they opt for. Our research shows that in many parts of the country, there has been an increase in family homes coming onto the market because they can’t be sold. At the same time, the industry is reporting a lack of family homes being built or sold, in the South East especially, meaning the ‘best fit’ home may not always be available.

Unless mortgage lending is relaxed to enable more first time buyers onto the ladder and to increase movement around the housing market, 2011 is set to every bit as challenging as 2010, with many people struggling to find a property to rent.


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