THE Association of Residential Letting Agents (ARLA) has revealed its predictions for the UK Property market for the New Year.
Ian Potter, Managing Director of ARLA, said the Private Rented Sector (PRS) will continue to see demand outstrip supply throughout 2013, particularly in London and the South East. The lack of affordable mortgage finance coupled with borrowing caution from consumers will result in more families choosing to rent rather than buy in the next twelve months.
Mr Potter said: “The PRS will likely play an even more crucial role in the housing market in 2013, as renting becomes a default choice for many people who simply cannot afford to own a home, or are too cautious to take out mortgage finance.
“This increased demand will put quality and standards under a greater spotlight, where some quarters of the PRS let the wider market down.
“2013 will be time for unscrupulous agents and landlord to put up or shut up. Consumers are rightly calling for much higher standards in the PRS and we are seeing demand for licensed ARLA agents grow amongst tenants and landlords alike.”
Mr Potter suggested that 2013 will not see a slowdown in rent levels, saying: “When it comes to rent levels, as long as the shortage of housing stock continues, it is unlikely that there will be any relief on rising rents throughout 2013. Indeed, in urban areas the demand for single person occupancies may well continue throughout 2013, which will increase the existing pressure on high demand properties and areas. “