Tenants are outstripping the supply of available rental properties, according to the Association of Residential Lettings Agents (ARLA).
ARLA research revealed that 70% of its member offices reported greater numbers of tenants than housing stock, compared to 59% last quarter and 24% in September 2009.
The South East was found to have the highest incidence of the issue, with 76% of members reporting tenants outstripping supply.
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.”
Potter added that the rise in Capital Gains Tax announced in the emergency Budget could discourage potential landlords from investing in the sector.
