Demand for residential rented properties has outstripped supply causing rising rent levels during the three months to the end of May, according to the latest quarterly survey from the Association of Residential Letting Agents (ARLA).

These results show the shortage of properties and the continuing need for investment in the private rented sector at all levels. Rents rose for the fourth quarter running for each type of property. As a result of increased demand, void periods have fallen to an average of 24 days.

Over two thirds of ARLA agents in Prime Central London report rising rent levels. Half of the agents in the South East say the same and in the remainder of the country the proportion of agents reporting has risen from 33% to 35%.

Seven out of ten Prime Central London agents says there are more tenants than properties. This is the highest figure seen since the ARLA surveys started six years ago. In the South East, 10% more agents report demand is outstripping supply.

Adrian Turner, chief executive of ARLA, said: “There is a shortage of all forms of housing in this country and these results show that the shortage of good, quality property is also apparent in the rented sector.”