The rental market in the South East of England has been exceptionally busy in 2004, fuelled partly by several interest rate rises, while many still cannot afford to buy. This is according to Leaders, an independently owned specialist residential letting and management agency.

The peak letting period was over the summer of 2004, with June proving to be their busiest month in two years.

With demand outweighing supply, the government has given the go-ahead for 120,000 new homes to be built every year. This will mean that there will be more properties available for property investors, which in turn will lead to an expansion of the private rented sector (PRS). As a result, Leaders now believe that the PRS could increase from its current tally of 2.2 million private rented homes to at least 3.5 million, within the next 5 years.

Joint Managing Director of Leaders, Paul Weller said: "The way we see it, the future of letting across the South East looks rosy for the foreseeable future."