December 2008 saw demand for rented accommodation mushroom, according to the UK's largest lettings agent Your Move.
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. But a dip in tenant demand is normal over the Christmas period.
Managing director of Your Move, David Newnes, said: "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 saw typical seasonal fluctuations in 2008 - December was a slower month because people are preoccupied with Christmas rather than moving house. Rental demand for the full year in 2008 was up by 49% compared to 2007.
David Newnes continued, "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."
Posted on: 29th Jan 2009