The problem of supply was especially acute in London and the South East, with 72 per cent of members in London reporting demand was outstripping supply.
Void periods were also down significantly, with the average time down to 24 days.
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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. However, even though it still needs more investment, the private rented sector is continuing to provide choice in housing and a safety valve for the housing market.”
This pressure from demand has in turn pushed up rent levels, with seven out of 10 saying landlords had increased the charge in London, compared to half in the South East and 35 per cent across the rest of the country.
However, there was a note of caution over flats, with their average value falling by 1.3 per cent in the previous three months.
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Mark Sismey-Durrant, chief executive of Heritable Bank, said: “London and the South East has three drivers; the underlying issue of supply, the number of household formations exceeding the number of houses built and immigration, although there may be some who have felt the squeeze and moved into rental accommodation. However, there are pockets of oversupply, especially flats in provincial cities.”
