Rental explodes as sellers let and buyers lease

Demand for rented accommodation in July grew 76% year on year according to Your Move estate agents. 

Lease commencements were up by more than three quarters in July 2008 from July 2007 as thousands of would-be house buyers scrapped plans to get on the property ladder.

Managing director of Your Move David Newnes said: “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.”

Tenant demand is also rising month on month –  the number of leases commencing in July rose 18% from the month before.

Newnes continued: “The huge boost in demand for rented accommodation is being supported by the large number of properties coming on to the lettings market.  A lot of sellers won’t accept depressed prices and are putting their homes up for rent instead.”

July’s increase in tenant demand is part of a wider trend.  The number of leases commencing in January to July 2008 in total is up 41% on the same period in 2007.

Newnes said: “Demand for rented accommodation is also being fuelled by buyers choosing to opt out of the market for the moment.  Even those who can get a mortgage can see the advantage of renting in the current climate. The question mark over Stamp Duty means buyers will hold out before they put in an offer until they know whether there’s a saving to be made.

“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.”



Demand for rented accommodation in July grew 76% year on year according to Your Move estate agents. 

Lease commencements were up by more than three quarters in July 2008 from July 2007 as thousands of would-be house buyers scrapped plans to get on the property ladder.

Managing director of Your Move David Newnes said: “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.”

Tenant demand is also rising month on month –  the number of leases commencing in July rose 18% from the month before.

Newnes continued: “The huge boost in demand for rented accommodation is being supported by the large number of properties coming on to the lettings market.  A lot of sellers won’t accept depressed prices and are putting their homes up for rent instead.”

July’s increase in tenant demand is part of a wider trend.  The number of leases commencing in January to July 2008 in total is up 41% on the same period in 2007.

Newnes said: “Demand for rented accommodation is also being fuelled by buyers choosing to opt out of the market for the moment.  Even those who can get a mortgage can see the advantage of renting in the current climate. The question mark over Stamp Duty means buyers will hold out before they put in an offer until they know whether there’s a saving to be made.

“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.”