The number of people letting out properties because they have been unable to sell has fallen to a record low according to the Association of Residential Letting Agents (ARLA).

The percentage of letting agents who are seeing an increase in rental property entering the market because it cannot be sold has fallen to just 13%, the fourth quarterly fall and well below the 94% high reported at the start of 2009 when the question was first asked.

Ian Potter, Managing Director of ARLA, said: “The resurgence of property prices and buyer demand in many areas is reducing the number of so-called accidental landlords. Despite the reduction of landlords in this situation, wider investment in rental properties remains strong across the market. The shape of the private rented sector is changing once again, with long-term landlords returning to the fore.

“As investment landlords make decisions that can affect their income for years to come, quality advice and information becomes ever more important. I would always advise choosing an ARLA agent to ensure you are getting the best possible advice about a rental property, whatever stage you are at.”

The research also revealed that the ability to sell a property is having an effect on the market with ARLA members reporting that 20% of landlords are currently decreasing their net investment by selling properties, an increase of 5%, whilst 42% state that landlords are increasing their net investment by buying properties, a fall of 1%.

Landlords who are retaining their property interests appear to be investing for the long term, with the average time between purchase and sale now standing at 19.8 years, this compares favourable with the figure recorded at the start of 2009, when the average period was 16.4 years.