Weak housing market fuels letting boom

Demand for rented accommodation in July rose by 76% year-on-year, according to estate agent Your Move.

Lease commencements were up more than three quarters in July 2008 from July 2007 as thousands of would-be house buyers scrap plans to get on the property ladder.

Compared to a normal year in which rental demand sees seasonal fluctuations, 2008 has seen continuous and strengthening growth. Landlords have experienced the strongest demand from tenants for decades, as property purchases slide and the ongoing mortgage drought prevents people from buying.

For landlords, the credit crunch is a cloud with a silver lining as opportunities to invest are ripe for professional landlords able to secure financing. With rising tenant demand comes rising rents and buy-to-let yields will consequently improve. House prices are under pressure at the moment, and there’s scope for buy-to-let investors with collateral to get good deals to expand their portfolios.”