Co-Operative Bank’s intermediary lending arm said between early December and the end of January 2012, 20% of its buy-to-let business was let to buy.
Rightmove figures show the average property is on the market for over 105 days before it is sold, against 80 days in April 2011.
Lee Gladwell, business development director at Platform, which announced plans to grow lending by a third in 2012, said: “Uncertainty around the economy, employment and house prices is continuing to dampen demand for house purchases and this is driving demand from those choosing to rent rather than buy.”
Meanwhile, research from specialist buy-to-let lender Paragon Mortgages confirmed void or tenant-free periods are at a two-year low. Landlords have been reporting falling void periods since Q1 2009 with the average property remaining empty for 2.8 weeks, which is a fall from 3.3 weeks in 2009.
Portfolio landlords have been hit harder at an average of 2.9 weeks in 2011, but that’s down from 3.4 weeks in 2009.
John Heron, managing director of Paragon Mortgages, said: “The decrease in the average void period can be attributed to the surge in demand we have seen for private rented property in the past 12 – 18 months.
“Tenant demand has increased at a rate never experienced before so it is positive that rental properties are being let quickly and there is less of a gap between tenancy agreements. This is positive news for the tenant and also the landlord too, ensuring their portfolio remains profitable.”
