» Click here for the original article

Great news for landlords everywhere – December 2008 saw demand for rented accommodation mushroom, according to the lettings agent Your Move.

Its figures revealed that despite a 14% month on month slowdown in the number of people signing up to new leases, rental demand in December was up a massive 63% on 2007 numbers.

The letting agent says this year-on-year boom is illustrative of what is going on in the UK – people need homes but no one can get a mortgage. The answer? To rent, of course.

David Newnes, managing director of Your Move, says: “In 2008 the lettings market was the only good apple in a bad cart: house prices were falling, no-one could get a mortgage, economic data was abysmal. The mortgage market is still choked but the drop in lending has boosted the lettings market. People are actively choosing to rent as it offers flexibility in this market. House prices are still under pressure – potential buyers are biding their time in short term lets while they eye the market from a safe distance.”

Your Move found that rental demand for the full year in 2008 was up by 49% compared to 2007, which is a figure all buy to let investors want to see. The economic turbulence is driving half as many people again to renting rather than buying.

Newnes says: “The credit crunch has scuppered first time buyers’ chances of getting onto the property ladder, but the silver lining in this mess is that landlords are seeing demand go through the roof.”

SOURCE: Your Move, 26/01/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog