Buy-to-let investors have reason to cheer with rental demand on the rise as first-time buyers stay away.

Paul Farrow, Daily Telegraph – 22 Oct 2008

The number of people signing up for rented accommodation rose in September, with demand up 50 per cent year on year, according to the UK’s second largest lettings agent Your Move, which has 250 branches nationwide. The number of leases commencing in September jumped 4.34 per cent compared to August 2008 – far beyond normal seasonal fluctuations, the agent added.

Your Move said that has the increase in demand coincided with mortgage advances being at an all-time low, it indicated that would-be buyers are renting rather than buying property. It is estimated that there are 1.6 million 20 to 39-year-olds who are renting because they cannot afford to get on the property ladder, according to Hometrack, the property data company. A 20 per cent fall in house prices would still open the market up to only 600,000 young buyers. Full Article