Rental demand going through the roof
House sales in the UK plummeted in 2008, but the UK lettings market is soaring as a result.
According to new data from Andrew Oulsnam, partner with Robert Oulsnam & Company the Midlands leading lettings agent, demand for rented accommodation in 2008 grew over 100% year on year.
Tenancy commencements were up 100% in 2008 from 2007 as thousands of would-be-house buyers scrap plans to get on the property ladder.
Landlords have seen the strongest demand for tenants for decades, following a fall in property purchases since the start of the credit crunch.
Young buyers have been driven out of the market and into renting by the disappearance of the 100% and 95% mortgages.
Managing Partner of Robert Oulsnam & Company, Andrew Oulsnam said:
“The credit crunch has buried any chances most first time buyers might have had on getting on the property ladder.
Mortgage finance hasn’t been this hard to come by for fifteen years – but for landlords this is a cloud with a gold-plated lining. “
Andrew Oulsnam added:
“There has been a stellar rise in the number of people looking to rent since the credit crunch began to kick in.
The criteria banks and building societies use for deciding how much you can borrow have got a lot tougher. People who would have fallen in the first time buyer bracket a year ago are now renting.
Opportunities to invest are ripe for professional landlords able to secure financing. With rising tenant demand comes rising rents – 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 portfolio.”