This is according to the latest Association of Residential Letting Agents (ARLA) survey which also found that the number of new tenancies has increased.
Results from the latest ARLA survey of its members show that the historical decline in numbers of tenants, which led to a surplus of properties to rent, is coming to an end.
83% of ARLA members signed up 10 or more tenancies during the last quarter, compared to 79% last quarter. Each member signed up an average of 36 new tenancies, compared with 32.6 last quarter.
Almost a third of members (33%) surveyed felt that supply and demand of properties is in balance; this compares with just 19% last quarter. Ian Potter, operations manager of ARLA, said: "This shift in the balance of supply and demand is extremely significant for the private rented sector. It gives further evidence to suggest that the property market as a whole is getting back on its feet.
"This shift also indicates that confidence is rising among prospective tenants; it seems that people who delayed setting up home 12 months ago, now feel secure enough to proceed. Equally, those who historically have shared a rental property seem happy to set out independently."
In addition, the number of members who believe that there are more residential properties available for rent than there are tenants to fill them dropped significantly in the three month period, from 70% to 43%. The number who say that there are more tenants than properties has risen from 10% to 24%.
The situation is particularly significant in the rest of the South East, where three times as many members said that there are more tenants than properties (27% compared with 9% last quarter).
"This recovery of sorts is still in its infancy and needs as much support as the Government can muster. As we have stated repeatedly, a healthy private rental sector is the only way in which the Government can hope to house future generations Accordingly, the Government must do all it can to nurture the recovery of the PRS including the implementation of meaningful consumer protection measures," Mr Potter added.
This latest ARLA research also showed that the average void period of a rental home has dropped for the first time in more than a year, indicating that properties are being rented more quickly.
