56% boom in demand for rented accommodation

Your Move says that demand for rented accommodation boomed 56% over the last year.

Despite a 7.6% month on month slowdown in the number of people signing up to new leases, rental demand in January 2009 was up a massive 56.4% on 2008.

David Newnes, managing director of Your Move, says: “As far as the 2008 property market was concerned, rental demand was a diamond in the rough. 

“While the mortgage market was still in dire straits, the drop in lending boosted the lettings market.”

But in January he says that while people are still choosing to rent, the number of mortgage approvals has increased.

He adds: “The slight dip in demand for lettings, and the up-tick in mortgage approvals seem to suggest that now most of the banks are owned by the government, they’ve been forced to start lending again. 

“I think a lot of government pressure is being applied to lenders to start offering some decent mortgages – rental demand has suffered as a result.”