This is according to a report from Countrywide, the letting agent and property services group.
The latest figures from Countrywide’s network of 1,300 estate agency and lettings branches reveals that the overall volume of new tenant applications in 2010 increased by 37% compared to 2009 with demand peaking between July and September. In contrast the average number of properties available to let fell -29% in 2010 compared to the previous year.
Figures from Countrywide’s mortgage division also show that the biggest growth area of lending growth in 2010 was applications for buy-to-let mortgages, with applications jumping 22% during 2010.
Commenting, Grenville Turner, chief executive of Countrywide, the UK’s largest property services Group, said; “The continued challenges faced by homebuyers to gain mortgage finance is likely to see more people turning to the private rental sector this year. Despite the increase in buy-to-let lending, supply remains significantly lower than demand, with an average of 4.5 tenants vying for every available property in 2010.
“During 2009 there were 2.3 tenants for every available rental property, which demonstrates the upward shift in demand we’re experiencing. This could soon reach critical levels as limited mortgage availability continues to stifle the market and the impact of the government’s austerity measures on social housing and employment kicks in.”
