Tenant demand soars in the North and Central England

Tenant demand has soared in the North and Central England over the past year, while the South and London have remained broadly flat.

That's the view of Sequence Lettings, which is part of Skipton Building Society's estate agency subsidiary Connells Group.

Sequence has 82 lettings outlets nationally and - while demand continues to be strong in London and the South ­- it has seen the number of people looking to rent in its Northern and Eastern and Central regions increase by 22% and 31% respectively.

Nationally, Sequence observed a 37% uplift in the number of people seeking properties to rent, and the upward trend continues into 2011 - with February's figures approximately 8% higher than the same period last year.

And in order to help cater for the burgeoning demand, Skipton has this week re-entered the buy-to-let market with a range of new 2 and 3-year fixed rate buy-to-let mortgages with interest rates from 4.45%. Having temporarily ceased buy-to-let lending in 2009, the Society believes the time is now ripe to re-enter this market in a prudent way.

Stephen Nation, Divisional Managing Director for Sequence Lettings, said: "With the number of UK households increasing and continued uncertainty over jobs and the economy, we have seen a trend of people renting for longer.

"This unprecedented demand, along with increasing yields, make now a great time for investors to expand their portfolios."

Sequence's observations chime with general market indications that the landlord sector is experiencing a resurgence,

Kris Brewster, Skipton's Head of Products, said: "This is just the latest example of how, as a mutual, we are doing our bit to provide product solutions which help fulfil people's evolving homeownership aspirations.

"We believe the buy-to-let sector is a key component of a successful housing market, with private landlords meeting a real social need and providing a vital first stepping stone towards homeownership for tomorrow's first time buyers - who are the oil which keeps the housing market machine moving."

Kris added: "Thanks to our prudent approach to lending, buy-to-let has always been a valuable and high-performing part of our mortgage portfolio. However, we decided to temporarily cease offering buy-to-let loans in 2009, as a cautious step to protect the business from the uncertainties facing the markets and economy at that time.

"However, with evidence that the housing market is beginning to stabilise, albeit with the potential for further limited house price falls later this year, we believe it's now appropriate to make a controlled, low risk return to this space. Therefore, we have decided to offer a set of straightforward and competitive products which we hope will appeal to existing landlords hoping to make the most of the investment opportunity this sector represents."

This latest offering builds on the popularity of the attractive and innovative mortgage solutions the Society has provided over the past year, ranging from varied and consistently competitive fixed and tracker rates to what is some of the only 95% LTV products available for first time buyers and next-to-buyers impacted by reduced equity due to challenging market conditions. The Society's track record for mortgage and savings value was recognised with 471 independent Best Buy table endorsements in national media during 2010.