Your Move has revealed 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.

The firm noted autumn saw the number of new leases come off summer highs in a typical seasonal slowdown, but November demand has seen a boost, due to a rise in the number of short leases being agreed. 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, said the year had been extraordinary for the lettings market, with renters preferring the flexibility that renting affords.

He added “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.”

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