HomeLet, a UK tenant referencing service, has released information on a milestone reached by the rental market.  July saw a 2.2% increase in the amount of the average rental price for a UK property.  The 767 pound mark is the highest level in three years.  This is another reminder that mortgage lending is still unobtainable for most, especially first time buyers.  Demand within the rental market continues to escalate which will prompt an equal shift in prices.

Less than three years ago, more than two-thirds of all UK homes were occupied.  Statistics from the Department for Communities and Local Government English Housing released data indicating this occupation level has fallen to 67%, exactly two-thirds.  UK residents who are able to purchase do.  The way the housing market is going to move forward though, is for a new wave of first time buyers to flood the market.  A philosophy which relies on the lose some, gain some principal.

The numbers of those who have been squeezed by the financial crisis are becoming more apparent with each survey.  The number of tenants aged between 26 and 35 who are just now looking to move out of a parent home or relative home is increasing.

John Boyle, Managing Director of HomeLet, commented on how the buy to let market will benefit from the increase in demand, saying: “The latest figures from the Land Registry's House Price Index show an annual price decrease of 2.5% of average property value in England and Wales however, people are still struggling to purchase their own home due to tough mortgage availability.

“Although the increase in rental figures is a sign of an economic struggle by the UK population as people continue to experience difficulties in purchasing their own home, property investors and landlords could now take advantage of the increase in available properties and purchase more quality buy-to-let houses. This is therefore a very encouraging sign for the lettings industry.”