Rental Demand Rises
June 25th, 2008 by 
Guy
Demand for rental properties rose by a massive 41% in the last year, reveals research from estate agent Your Move.
The demand for tennants also increased month-on-month with the number of leases starting rising 14% from April.David Newnes, managing director of Your Move, says: “Mortgage finance is hard to come by these days – the rental market is definitely picking up the slack.
“And 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.”
Your Move says May’s increase in tenant demand is part of a wider picture..
The number of leases that started in 2008 in total is up 34% on the same period in 2007, the trend indicates that landlords are compensating for the lack of affordable housing.
Newnes says that with banks and building societies tightening their mortgage application criteria and raising their fixed rates people who would have fallen into the first-time buyer bracket a year ago are now renting.
He says as a result buy-to-let will grow this year.
Newnes adds: “Opportunities to invest are ripe for professional landlords able to secure financing. With rising tenant demand comes rising rents - 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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June 25th, 2008 at 9:06 am
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June 25th, 2008 at 9:32 am
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