Young professionals choosing to stay away from making the biggest financial commitment of their lives and buying a home in a declining market are behind the current boom in demand for rental accommodation, it has been revealed.
A new report published by the estate agents Your Move has shown that landlords across the country have seen demand for their properties grow by 38 per cent in the past 12 months alone.
This comes when the Council of Mortgage Lenders has reported that the number of new loans for home purchase being approved has slumped to a near-record low, indicating that, whether through choice or compulsion, renting is now seen as the most economically sound housing option.
Between May and June of this year alone, demand was seen to rise by three per cent, taking the total growth in the rental sector over the past 12 months to 38 per cent.
"There has been a stellar rise in the number of people looking to rent since the credit crunch began to kick in," explained Your Move managing director David Newnes.
"The criteria banks and building societies use for deciding how much you can borrow have got a lot tougher. People who would have fallen into the first time buyer bracket a year ago are now renting."
While renting does offer tenants greater flexibility, many may need to make use of secure storage so as to cope with the lack of space not owning a property can entail.
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