According to letting agent Your Move, the buy-to-let sector is booming as the number of leases that commenced in January and February rose 21% compared to 12 months ago.

Your Move believes that not only has the credit crunch led to a pronounced rise in tenant demand, but that the trend is set to continue.

David Newnes, managing director of Your Move, said: “The start of 2008 has seen considerable growth in the buy-to-let sector. Squeezed credit and volatile mortgage rates have contributed to an increased demand for rental accommodation. First-time buyers with little or no deposit are finding it virtually impossible to secure high LTV mortgages – the days of 125% mortgages are long gone. But frustrated wannabe first-time buyers still need a roof over their heads and buy-to-let is filling the gap. The strong fundamentals are impossible to argue with.

“The demand is definitely there. The private rented sector is the out-and-out beneficiary of the liquidity squeeze. Not only do buyers have less access to credit, but those that can get it have been spooked by the negative sentiment surrounding house prices. Landlords are cleaning up.”