Letting agents have told Arla that rented accommodation stock is lower than ever before.
Almost three-quarters of the letting agent body’s members said they have more people looking for properties than available houses on their books.
Ian Potter, operations manager of Arla, stated that the spring season usually sees an upturn in the number of homes available to rent.
He added that the situation has been worsening over the last few months.
“The supply and demand of homes to buy is also swinging out of kilter – making the prospect of a severe rental housing shortage ever more likely,” he said.
Letting agents and landlords may therefore find they can up the amount of rent they ask for, because tenants will have fewer properties to choose from.
Last month, Mr Potter criticised chancellor George Osborne’s Budget, stating that it did not consider the needs of landlords.
He added that landlords should not be penalised by a rise in capital gains tax.
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I think on the other side is the proposed cuts to housing benefit which could have quite a negative effect on the rents that landlords can ask for. Will be interesting to see just how big these cuts turn out to be.