More landlords are selling property than buying it, ARLA has reported.

It says this is the first time in four years that this has happened.

ARLA also says that the average “licensed” branch is now managing 135 properties, a drop of 6% on the second quarter of this year.

ARLA reports that in the third quarter of this year, 68% of its respondents said that tenancy demand outweighed supply.

David Cox, managing director at ARLA, said: “This quarter, we have seen demand for properties in the rental sector significantly rise, while the supply of residential rental properties has dropped.

“This activity has bucked the trend recorded over the past 11 years for this quarter, in which we normally see an increase in the number of new tenancies signed up. However, with landlords not investing in new buy-to-let property, tenants are finding it increasingly difficult to secure contracts.”

Whilst the overall property stock is down, ARLA says that some of its licensed members reported that a large proportion of buy-to-let properties that were put up for sale have since come back on to the rental market, after landlords’ attempts to sell had been unsuccessful.