d of the tunnel


The third quarter of this year has seen further strengthening of demand in the rented property sector with 73% of ARLA members saying there are more tenants than properties available – a fifth consecutive quarterly uplift in tenant demand.


The need for shelTer In spite of the comparatively poor resilience of new lending in the buy-to- let arena since the credit crisis struck, the fundamentals underpinning demand in the private rented sector are good. “People are finding it hard to buy for various reasons,” explains Paul Howard,


head of corporate accounts at Nationwide and The Mortgage Works. “First time buyers are finding it harder to get onto the property ladder because of prohibitively high house prices and the need for large deposits. “We’re seeing more full time students in universities which tends to increase demand for rental property. We have a growing population – and also rise in the number of people in one-person households. “There’s a net rise in immigration and many of those people coming into the UK from abroad lack the requisite credit history to qualify for a mortgage. All of


that means more people are looking to rent,” he says. David Salusbury, chairman of the National Landlords, agrees. “Rental market prospects are good from t he landlord perspective. People previously able to get onto the housing ladder are now regrettably struggling and may find themselves renting.”


Recently relaunched buy-to-let lender Paragon’s managing director, John Heron, says sustained demand for rented accommodation ultimately allowed the lender to re-enter the market in October this year.


mortgage introducer NOVEMBER 2010 29


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