Shoot up in demand for rented homes

Posted under General by Jermaine

Demand for rented property is shooting up, reported Your Move, the UK’s second largest letting agent. The number of leases in September rose by 4.34% compared to those in August.

Your Move informed that the number of people who moved into rented homes shot up by 45% compared with same period of 9 months in 2007.

The letting market is flourishing across the UK since people are unable to get mortgages on affordable terms. Lenders’ indifferent attitude towards borrowers due to the credit crunch and financial upheavals is making it impossible for potential buyers to get on the ownership ladder and making them stay in rented houses for longer periods.

The demand for rented homes is strongest and had never been seen so high before by the letting agent. Supply of rented properties is also increasing since owners who are unable to sell are offering them on rent to ensure flow of steady income.

Knight Frank, another estate agency, is predicting only 2% growth in rents which is much slower than 7.5% growth of 2007, largely due to the increase in supply of rented property.

According to housing intelligence company, Hometrack, approximately 1.6 million people in the 20 to 39 years age group are renting since they cannot afford buying. A fall of 20% in house prices would open up market to 600,000 potential buyers.