A new survey just released by the Association of Residential Letting Agents shows demand for rental property may finally be waning, and the market is showing signs of softening. According to the latest research for the last quarter of last year, some 55% of ARLA members still reported more tenants than properties, and while this figure is still good it is significantly less than the 74% seen during the third quarter of the year. Figures for people actually signing a new tenancy agreement were consistent with the previous quarter, but were slightly less in central London.

During the fourth quarter 39.2% of members reported that more tenants were struggling to meet rental payments, although this figure has only increased very slightly on the previous quarter when 36.7% reported an increase. According to the president of ARLA, Tim Hyatt, there could be several reasons why demand for rental property has decreased, and one could be that the fourth quarter includes the traditionally quiet Christmas period. It could also be due to more consumers having to tighten their belts as personal finances become more constrained.

Whatever the reasons as to why, a good sign is that the numbers signing new tenancy agreements are relatively stable. However ARLA has added the word of caution for landlords taking on new tenants, and warns the it is more critical than ever to follow up references and conduct thorough research before signing on the dotted line. The easiest way to do this is to seek advice from letting agents in Nottingham who have the necessary experience to ensure the right tenant is found.