Print friendly version 24 Jun 2008

Rental demand booms

Demand for rented accommodation has risen be 41% over the past year, according to lettings agent Your Move.

Figures from the agent showed lease commencements were up by 41% in May 2008 since the same time in 2007. There was also an increase month-on-month, with lease commencement increasing by 14% between April and May 2008.

David Newnes, managing director of Your Move, attributed the increase to the lack of mortgage finance available at the moment. “We’ve seen a considerable number of would-be buyers put house purchase on hold because of the squeeze on their finances. They’re turning to the rented sector while money is tight,” he explained.

May’s figures are not a one-off, but part of a wider trend according to Your Move. In April 2008, the number of lease commencements was 56% higher than the year before. The total number so far in 2008 is up 34% on the same period last year. Monthly figures have also showed a steady upwards trend.

Newnes continued: “Buy-to-let will grow this year. Opportunities to invest are ripe for professional landlords able to secure financing. With rising tenant demand comes rising rents, so buy-to-let yields will consequently improve. House prices are under pressure at the moment, and there’s scope for buy-to-let investors with collateral to get good deals to expand their portfolios.”

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