Demand to continue to outstrip supply in UK rental market

Real estate investors looking to take advantage of the buy-to-let market in the UK may be interested to hear that the imbalance between supply and demand for rental property is likely to continue.

According to LettingZone, a surplus of prospective tenants will face a shortage of available homes for the "next four or five years".

Mark Garner, managing director at LettingZone, said that the situation had been caused by the difficulty for individuals to get on to the housing ladder.

"There is not much more stock coming on to the market and there are certainly more tenants coming on to the market and this will continue for probably the next four or five years," he added.

"Existing renters aren't moving because it costs a lot of money to move house, so they are finding it easier and cheaper to stay put."

Meanwhile, the news is likely to lead to increases in average rents, with demand outstripping supply across the country.

Indeed, earlier this year, FindaProperty.com reported that the average rent increased by 2.3 per cent during the second quarter of 2010 compared to the first.

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