A growing number of Britons who sold their homes last year but are finding it difficult to purchase a new property or receive a new mortgage are instead turning to the private rental sector in order to address their accommodation needs. According to statistics compiled by the Association of Residential Letting Agents (Arla), 54 percent of residential landlords found that more Britons are becoming tenants, including many former homeowners. Some observers have referred to these renters as “reluctant tenants,” in that they struggle to purchase a new home due to the low supply of properties in some areas, and very strict mortgage conditions throughout the country.
But Ian Potter, Arla’s operational manager, noted that there are benefits to renting, and an increasing number of Britons are taking advantage of the flexible lifestyle that being a tenant, rather than a homeowner has to offer. During a time of continued high unemployment and recession, for example, renting a flat or home makes it easy to relocate on relatively short notice, if one finds a job in another city or region. Homeownership, however, ties one down much more to a specific city and neighbourhood.
Another piece of good news for residential landlords is the finding that 41 percent of all Arla members found that they had more interest from prospective tenants than they had properties available for rent. This is in contrast to the 24 percent figure recorded last fall. As such, the balance between supply and demand has tipped in the favour of landlords and buy-to-let investors.
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