A Row of Victorian Houses [Credits: David]
Your Move, the UK’s second largest lettings agent reported a 50% increase in rental demand in the year from September 2007 to 2008. UK’s September leases increased by 4.34 %, since August which clearly indicates that people are more inclined to rent right now due top the lack of available mortgages.
This is great news for property owners who are in the position to own an investment property. Figures indicate that more than 25% of young working households were unable were unable to climb the property ladder because of the current market situation.
High prices, lack of mortgages and job shortages in some industries force young working couples in to renting rather than owing their own house. These figures were also backed up by Professor Steve Wilcox of the University of York with data from Hometrack.
London and the south west are worst affected. Over 40 percent of households with ages between 21 and 40 are unable to access the housing market.
In general more than 28 percent of young working households aren’t even able to buy into the lowest level of their local property market.
David Newnes, managing director of Your Move, said: “As banks stopped 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.”
In the current situation the UK rental market is certainly a blessing for home owners with existing investment properties. It is also a promising time for those people who are playing the waiting game in the hopes of picking up a bargain. Meanwhile, landlords are rubbing their hands in pure ecstasy as they continue to ride the increased demand.