Demand for renting set to soar

Demand for rented accommodation is set to soar in 2008, according to Property Hawk.

The firm believes that current housing market conditions mean that buy-to-let property investors will benefit from increased demand.

"There's a dual effect of rising house prices, which prices more potential first-time buyers out of the market – which means they have to rent, and rent for longer than they would have done," said Chris Horne, editor of Property Hawk.

"If anything, the uncertainty with house prices will put off potential first-time buyers – on the basis that they could, potentially, buy a house cheaper later on. Therefore they're more likely to rent for next year.

"I think rental demand will be growing and strong into 2008, as people sit back and wait to see what happens with the market," he added.

The Association of Residential Lettings Agents recently revealed that demand for rented accommodation is currently at a five-year high.

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