Almost 7% of the Association of Residential Lettings Agents (ARLA) member offices reported there were more tenants than available properties due to the vagaries of the current housing market.
This is even more pertinent in the South East where 76% of member offices reported shortages. The situation has not been helped by the rise in Capital Gains Tax which could discourage potential landlords from investing. The 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, said Ian Potter, ARLA operations manager. Combined with low construction levels and the cap on housing benefits, instead of the housing market getting back on its feet, what we may soon see is people going without homes they can afford something that simply should not be allowed to happen. In the current housing market, lenders are however trying to provide more up-to-date offers to help the modern day recession hit home buyer. Santander for example has recently reduced their five year fixed rate to 5.25% and it is available to all customers, with reduced rates on two-year fixed with Homebuyer and Remortgage Solutions available. Customers of the Co-operative Bank and Britannia now have the option to mix and match mortgage arrangements for only a single application fee and Leeds Building Society has reduced its fixed rate to 4.89% for fixed fee buy to let 5-year fixed rate mortgage deal.
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