09-02-2010 – Leaders, the UK’s largest independent letting specialist, is reporting an increase in demand for rental accommodation at the start of 2010, with demand outstripping supply in parts of Sussex, Hampshire, Surrey, Hertfordshire, Berkshire, Buckinghamshire and Dorset, where the firm has a total of 42 branches.

Says Leaders’ managing director, Paul Weller: “Despite the disruption of the snow during the first two weeks of January, most of our branches experienced an incredibly busy month, with high demand for all types of properties, from studio and 1 or 2 bedroom flats to big and small family homes. We are finding that good quality properties are being snapped up quickly with many people waiting for more to come onto the market. This is an excellent time for anyone considering buying a property to let, or renting out their home, to enter the lettings market.”

Although the UK is officially coming out of recession, many people are still either unwilling or unable to take on a mortgage and are choosing to rent rather than buy. The availability of finance for first-time buyers has not improved significantly since last year and is still stifling the sales market, leading to increased demand in the rental sector.

Whilst recent research by the Association of Residential Letting Agents (ARLA) shows that 54% of landlords believe that tenants are being forced into renting as they either cannot afford to buy; cannot find a competitive mortgage; or are unable to find a suitable property to buy (these tenants have been coined “reluctant tenants”), Leaders believe that a significant number are choosing to rent because they prefer it.

Says Mr Weller: “Renting offers a more flexible and carefree lifestyle than buying. There are no worries about maintenance and repair costs, fluctuating interest rates affecting mortgage payments, or committing to a property or area long-term. Many people want or need to be able to move easily for work and enjoy the freedom that renting offers.”

This attitude towards renting, which is becoming more similar to that of mainland Europe where renting is the norm, means that renting out a property – provided it is done with professional, expert advice – is an attractive long-term investment.
Says Mr Weller: “Boom or bust, the letting market has the capacity to thrive: when the economy is doing well, people want the flexibility to move for work opportunities; when it is doing badly they prefer not to commit to a mortgage and the additional expenses of home ownership. Throw in the issues we have been experiencing lately – a credit crunch and a slow sales market – and it is clear why the lettings market is doing so well.

“Overall, we are very positive about 2010 as we expect the high demand for rented accommodation to continue in the face of both the slow sales market and the wider economic uncertainty.”