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The number of tenants committing to new leases rose 1.3% in November, driven by would-be property buyers signing up for short leases while they wait for property prices to fall further.

According to Your Move, rental demand hit record highs in 2008 as the credit crunch prevented people from getting onto the property ladder.

The lettings website found that new leases coming off summer highs led to a typical seasonal slowdown in October. But November demand saw a boost, due to a rise in the number of short leases being agreed. It says demand for rented accommodation is growing strongly year on year, with the number of new leases beginning now 61% higher than in November 2007.

David Newnes, managing director of Your Move, says: “This year has been extraordinary for lettings. People like the flexibility that renting affords, especially in a market like this. The higher number of short lets has arisen because people in the street are beginning to recognise the massive value in the sales market. They want to be able to snap up bargains if and when they can get a mortgage.

“The chips are still down on mortgages – we would expect the rental market to do well next year as a result.”

This phenomenon will continue as house prices fall further – no want wants to buy a home and then see their investment drop in value as soon as they move in. More and more ‘wait and see’ prospectors will be knocking on the doors of landlords all over the country looking for a short-term lease next year, waiting and hoping for the market to bottom out and begin to rise again.

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