Buy To Let Updated:
The number of people moving into rental properties fell marginally between May and June this year as activity in the first-time buyer market continued to show signs of improvement.
According to the latest Buy-to-Let Index from LSL Property Services, new tenant numbers across England and Wales dropped by 0.8% last month, providing the rental market with a slight respite.
Demand in the rental sector has remained consistently high over the past few years, as a result of the financial crisis. Since 2008 many prospective buyers have found themselves shut out of the mortgage market due to cautious lenders adopting a risk averse approach to lending and tightening lending criteria.
The introduction of Government initiatives to boost the mortgage and housing markets, such as the Funding for Lending Scheme, in recent months have helped many would-be buyers onto the property ladder, with mortgage rates subsequently falling to record lows.
Despite a monthly reduction in new tenancies, however, numbers remained 3.5% higher compared with June 2012.
The average rent in England and Wales remained at £737 for the second successive month, as rental inflation showed signs of slowing. The average cost of renting a home in England and Wales is 2.6% higher than in June 2012, 0.3% less than the current rate of inflation at 2.9%.
David Newnes, director of LSL Property Services, said: "With better access to finance in the first half of this year, the immediate picture has become far brighter for tens of thousands of first -time buyers.
"And now these green shoots are starting to bear fruit for those still renting too, as milder competition for tenancies has kept a lid on the cost of renting."
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