Lease commencements have grown strongly in 2008 as tightened lending and the property purchase slide has kept many would-be house buyers in the rental market. The number of leases commencing in January to July 2008 is up 41 per cent on the same period in 2007.
Your Move managing director David Newnes says: “The mortgage famine has priced a huge number of buyers out of the market – they’re choosing to rent until the market returns to normality. Demand for rented accommodation has exploded – July’s massive uplift is the biggest this year. Normally summer sees a natural slowdown as people holiday rather than move home – but this year is bucking that trend.”
Newnes believes that opportunities are ripe for professional landlords who are 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.”