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Written by rosalind renshaw

The buy-to-let market is continuing to experience unprecedented levels of demand, suggesting that Paragon’s re-entry this month to the specialist lending market after an 18-month gap will prove extremely timely.



The number of tenants seeking rental properties has reached an eight-year high, according to the Association of Residential Lettings Agents.

Ian Potter, operations director of ARLA, said: “The market has bounced back in a way that no one could have predicted, to levels of demand that have not been seen since the last century.



“More than 70% of our agents have stated that consumers coming to their offices are being forced to rent because of the pressure exerted on potential home buyers. This is real evidence of a generation forced into renting.” 



The levels of demand are the highest since the ARLA survey began nearly a decade ago and are more than double those experienced at the peak of the home ownership property buying boom in 2007.

Demand is highest in the south-east where 81% of agents have stated that there are more tenants than properties compared to 67% in the rest of the UK and 73% in central London. 

Potter added: “It has to be hoped that this unprecedented growth in the rental market will attract much-needed investment into the private rental sector as it copes with the huge surge in demand from a generation who cannot afford to buy.”

Comments

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    Yep. Give me 50 properties and I'll rent them all by Saturday!

    • 14 October 2010 21:50 PM
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    Have a listen to last Friday's "Any questions" (R4 iplayer) Mr Duncan Smith either gave any early indication of rental sector policy or he is without any insight into the economics of the rental sector. Apparently greedy landlords are exploiting the housing benefits system and charging exorbitant rents.
    I wonder what would happen if any measure to control HB rents resulted in widespread NTQ for HB tenants. Rental inflation pressures have been building for well over 12 months now so it might not be such a great idea risk the socially explosive possibility of freeing up a few hundred thousand (Million) HB lets.
    The last government didn't have a very informed insight into our industry so lets hope someone can a message through to Mr Shapps and Mr Duncan Smith that a shortage of supply means that prices will be naturally high. Any measure to make savings on the cost of social housing could backfire like the introduction of poll tax

    • 11 October 2010 10:35 AM
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    With the lack of any good buy to let mortgagesin the market it was a matter of time before the lettings drought was going to happen. Banks need to lend asap before the market comes to a complete standstill!

    • 11 October 2010 09:43 AM
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