ARLAs latest quarterly survey reveals that there is a growing shortage of properties in the rental market, although average rental returns have declined slightly, achievable rent levels have increased over the last six months.

A third of all ARLA member offices reports that during the three months to March, demand for rental property outweighed that of supply (up by nearly a quarter - 23%, since the last quarter of last year).

Average rental return has fallen slightly. Houses fell from 5% to 4.9% and flats, 5.3% to 5.2%.

ARLA said that in all areas, its agents reported that achievable rent levels have risen.
Compared to three months ago, there has been a substantial improvement in prime central London, where the proportion of respondents saying there has been an increase in achievable rent levels has risen from 24% to 28%.

This applies to all property types. In the rest of the South East the average achievable rent has risen from 21% to 26% and in the rest of the country there has been a small decline, from 37% to 35%.