ARLA said that levels of demand are the highest it has recorded since its survey began nearly a decade ago and are more than double the figures seen at the peak of the market in 2007.
However, it warned that greater tenant protection must be introduced by the government as numbers increase.
Demand was highest in the South East of England, with 81% of lettings agents saying they have more tenants than available properties, compared to an average of 67% in the rest of the country and 73% in central London.
Ian Potter, operations director of ARLA, said: “The market has bounced back in a way that no one could have predicted to levels of demand that have not been seen since the last century.
“More than 70% of our agents have stated that consumers coming to their offices are being forced to rent because of the pressure exerted on potential home buyers. This is real evidence of a generation forced into renting and the government must recognise the need for regulatory protection for them.”
Potter said that the minimum protection offered to tenants must include consumer redress through an Ombudsman and Client Money Protection similar to an ABTA Bond.
Potter said: “It has to be hoped that this unprecedented growth in the rental market will attract much needed investment into the private rental sector as it copes with the huge surge in demand from a generation who cannot afford to buy.
“But we must ensure that ‘generation rent’ receives as much help as possible from the government to ensure the proper regulation of the sector.”
