The number of tenants committing to new leases rose 1.3% in November, attributing the increase to would-be property buyers signing up for short leases while they wait for property prices to fall further, Your Move has revealed.
Demand for rented accommodation is growing strongly year on year, with the number of new leases beginning now 61% higher than in November 2007.
David Newnes, managing director of Your Move, says the year had been extraordinary for the lettings market, with renters preferring the flexibility that renting affords.
"The credit crunch is showing no signs of abating - what was an ocean of mortgage finance is now a mere trickle. Banks are demanding ludicrous deposits, sometimes up to 40%. People who want to take advantage of low house prices cannot afford to - they are being forced to renew their leases and stay in rented accommodation.
"The chips are still down on mortgages - we would expect the rental market to do well next year as a result," he adds.IFAonline
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