A RISE in property sales in the UK is leading to a reduction in potential rentals which could mean the end of the reluctant landlord, according to lettings agents.

The latest research from the Association of Residential Letting Agents (ARLA) reveals that the number of people letting out properties because they have been unable to sell has dropped to a record low.

According to ARLA’s latest quarterly report, the percentage of letting agents seeing an increase in rental property entering the market because it cannot be sold has fallen to just 13 per cent.

This figure represents the fourth consecutive fall, and is far below the 94 per cent high recorded when the question was first asked at the start of 2009, during the post credit crunch property crisis.

The association points out that the renewed ability to sell property is having a significant effect on the overall shape of the residential investment market.

The proportion of ARLA members who think landlords are currently decreasing their net investment by selling properties is up sharply, from 15 per to 20 per cent.

This is while the proportion of respondents who think landlords are increasing their net investment by buying properties declined from 43 per to 42 per cent.

Of the landlords who are retaining their property interests, the vast majority now appear to be investing for the long term, with the average time between purchase and sale now standing at 19.8 years.

Again, this contrasts significantly with the comparable figure recorded at the start of 2009, when the average period was 16.4 years.

Additionally, only 1.5 per cent of respondents said that they had become a residential landlord in order to make a short term capital gain over a period of less than five years. The majority – 45 per cent – said that they had let their property to achieve a combined yield from rental income and capital appreciation while 37 per cent had done so in order to create a ‘nest egg’ for their long term future.

“The resurgence of property prices and buyer demand in many areas is reducing the number of so called accidental landlords,” said Ian Potter, managing director of ARLA.

“Despite the reduction of landlords in this situation, wider investment in rental properties remains strong across the market. The shape of the private rented sector is changing once again, with long term landlords returning to the fore.

“As investment landlords make decisions that can affect their income for years to come, quality advice and information becomes ever more important. I would always advise choosing an ARLA agent to ensure you are getting the best possible advice about a rental property, whatever stage you are at,” he added.

Kim Smith, who is branch manager at Leaders in Basingstoke, advises landlords: “When choosing a letting agent, you need to bear in mind that you could - and ideally will - be working with them for many years to come. A strong long-term relationship between you and your agent is crucial to the success of your investment and your overall peace of mind.

“It is a huge leap of faith to entrust your greatest asset to someone else’s care. No agent should underestimate that trust or the responsibility it entails.

“Our landlords find it reassuring that we are based locally, have among the most experienced and highly qualified staff in the industry and are always 100 per cent focused on protecting their interests.

“As a result, many of them have been with us for more than 10, 15 and even 20 years.”