New research from the Association of Residential Lettings Agents (ARLA) has found that the number of properties available for rent is falling, making the prospect of a severe shortage of rented housing more likely. This will not be good news for families planning to rent a home when they relocate within, or to, the UK.

In the ARLA Review and Index for Q2 2010, almost threequarters (70%) of ARLA member offices said that there were more tenants than available properties. This is an increase from 59% last quarter and 24% in September 2009. The imbalance is particularly acute in the South East, where 76% of member offices report more tenants than properties.

Ian Potter, operations manager of ARLA, said, “The spring period would usually see a rise in rental properties coming onto the market, and although there is some evidence of landlords considering selling up, it is not enough to counteract the change in supply.

“This situation has been deteriorating rapidly in recent months, as 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.

“In his Budget, the Chancellor did little to incentivise investment in the Private Rented Sector – in fact, the rise in Capital Gains Tax may actually discourage potential landlords from investing. This, combined with low construction levels and the cap on housing benefits, means that, instead of the housing market getting back on its feet, what we may soon see is people going without homes they can afford – something that simply should not be allowed to happen.”

To view the Q2 2010 ARLA Review and Index, visit www.arla.co.uk/q2ri