Rental property is in high demand. Many are looking to secure remortgage for investment into buy-to-let property and landlords are seeking remortgage to add more property to their portfolio. Many would be home owners are blaming high deposits and loan requirements for making it difficult to secure lending, so rental property is their only alternative. The low home prices and high demand for rental property should boost those thinking of investment through remortgage to react.

Kevin Paterson, sales and marketing director for Assurant Intermediary, said: "The rental market has remained buoyant over recent months.

"Economists at the Halifax believe that house prices will remain broadly unchanged over 2010 as a whole, so the house price to earnings ratio is going to remain high and its not likely that would be borrowers will find it any easier to obtain a high loan-to-value mortgage over coming months."

He added: "There is a huge question mark over thousands of jobs in the public sector. This is bound to have a knock-on effect. I wonder how many people are going to be dissuaded from buying a home, given the prevailing uncertainty on job security."

Demand for rental living reached record levels for second quarter. Countrywide, UK’s largest letting agent, said 50,480 people wanting to rent property registered during second quarter. This is the highest level recorded since Countywide started collecting such data in 2003. This number was also 16 per cent higher than those registered in first quarter.

The data also showed that there are 5.5 tenants competing for every property. Demand in the south west was the highest for those looking to rent a two-bedroom property. For that group the demand was 23.1 people for every available home. Vacant properties are re-renting within an average two weeks.

Demand is expected to continue. John Hards, co-managing director Countrywide Residential Lettings, said: "The number of tenants entering the market is at unprecedented levels, and we have yet to enter the peak season. Student demand for private rental accommodation will increase further with university applications at record levels."