Third Quarter 2004 highlights

Almost a third (32%) of all ARLA offices report more tenants than properties available for them, up from 20% three months ago. This 12% swing is seen as an important indicator of a sustained pick-up in new lettings, and is the third quarter in which available stock has reduced.

The average capital asset values of both rented houses and rented flats have risen substantially over the last three months with values outside the South East of the country rising the most with increases of 10% for houses and 8% for flats.

The average weighted rental return on a rented house is down slightly from 5.1% to 5.0% compared with June (previous quarter unchanged) whilst the average rental return on a rented flat has fallen from 5.3% to 5.2%.

The average void period is unchanged compared with the second quarter of 2004 at 29 days per year.

The average number of purely investment properties which are managed by ARLA members offices is an unchanged 83 properties compared with three months ago.

The average proportion of ARLA members’ offices’ portfolios which are made up of investment property is down slightly from 51% to 50% compared with the second quarter of the year.

The average number of new tenancies signed up in the third quarter of 2004 was 33, up from 31 in the second quarter, continuing the rise experienced since the first quarter.

ARLA point out that these figures are averages and there will be significant local differences as well as significant differences between individual firms in the same area.

The full report can be read as a .pdf file from http://digitalnation.fileburst.com/arla/the_arla_review_index_q32004.pdf

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