Almost three quarters of ARLA members report more tenants than available properties, which ARLA said was likely to get worse next year.
Ian Potter, operations manager at ARLA, said: "The package of measures unveiled in the Government's housing strategy could go some way to helping get the wider housing market moving.
"But it will take time for the measures to have an impact, and in the meantime the issue of a severe lack of stock will continue to affect the PRS well into 2012, particularly in London and the South East.
“However, there is some anecdotal evidence in parts of the country that stock levels of rental property could be increasing."
ARLA has also predicted a rise in arrears and repossessions within the rental sector as latest Government figures show unemployment at its highest for more than 15 years.
"Creeping unemployment may have an impact on the financial stability of both tenants and landlords, which in turn may spark a rise in rental and mortgage arrears, and even repossessions," said Potter.
"While it is impossible to know whether someone will be solvent in the future, it is important to carry out relevant checks on a potential landlord or tenant, to look for signs of financial instability.
“We would always recommend that consumers rent or let a property via a licensed lettings agent, who will be able to carry out checks on their behalf."
Spotlight on renting
ARLA has also claimed growing reliance on the private rented sector will put pressure on participants to improve standards.
ARLA president Tim Hyatt said: "An improvement in the standards of consumer care in the private rented sector could be the silver lining of the post-recession cloud currently covering the housing market.
“Lettings is an unregulated industry which means unethical letting agents, and landlords, are able to exist unchallenged.
"In London, the Mayor has pledged to set common standards across London for landlords and agents but we would like to see this on a nationwide scale.
“In absence of this to date, we have developed our own licensing scheme to help protect consumers if something goes wrong.
“We would therefore urge that consumers use an ARLA-licensed lettings agent."
All ARLA-licensed member letting agents must be covered by a client money protection scheme and hold professional indemnity insurance - which means consumers are protected against negligence.
