Yourmove also say that the number of leases commencing in September jumped 4.34% from August 2008 coinciding with mortgage advances being at an all time low, which indicates that would-be buyers are renting rather than buying property.
This is in contrast to press reports in London which indicate that the market is currently flooded with unlet property and rental prices are under pressure.
Managing director of Your Move, David Newnes, said: “As banks stopper the bottle of mortgage finance, potential buyers have to stay in rented homes for longer than they have in the past. The lettings market is thriving across the UK – we are seeing the strongest tenant demand we’ve ever had, far beyond normal seasonal fluctuations.”
"Although the lack of mortgage finance is pushing would-be buyers into renting and would-be sellers into becoming landlords until the market stabilises, the influx of supply is being met by a flood of demand - keeping rents firm. The number of leases commencing in January to September 2008 is up 45% on the same period in 2007."
“Mortgage finance is still expensive – as a result, people are choosing to rent. But in spite of the larger number of rental properties coming on to the market, as disillusioned sellers become ad hoc landlords, would-be buyers are picking up the slack. They’re biding their time in the hope that they’ll bag a bargain when the market bottoms out. With demand consistently strong, landlords could clean up.”
