Private Rented Sector 'Ripe For Investment'

Increased demand for rental property is sparking a renewed interest in the private rented sector from landlords in some parts of the UK, according to the Association of Residential Letting Agents.

Achievable rent levels on residential property have risen in the last six months, according to 60% of ARLA member agents and have outperformed other investment classes consistently for the past two years.

The average period for which a rental property is empty in between lets is just 2.7 weeks per year, down from an average four weeks two years ago.

Ian Potter, Operations Manager at ARLA, said: "Three quarters of our members are reporting that demand for rental property is outstripping supply and, with rental returns currently at 5%, anyone thinking about investing a property to rent could be well-placed to consider their options in the coming months."

ARLA's research shows that prudent landlords are moving quickly to expand their portfolios, with almost a quarter (23%) reporting that they have bought properties in the last year. The most popular regions for investment are the North West, Midlands and Central London. In contrast the Rest of London saw the fewest landlords buying property.

ARLA advises anyone considering investing in a rental property or portfolio, to first seek advice from a professional, licensed lettings agent.Prospect Lettings is a member of ARLA.