Demand for rental property decreased slightly in October, down -2.35% on September, according to Your Move.

But since the index cut-off date, Your Move has tracked a recovery in demand. The ‘Your Move Rental Demand Index’ uses two-month rolling averages to measure demand for lettings in the UK. The most recent weeks’ figures reveal the number of renters beginning new leases is up +6% from September 2008.

David Newnes, managing director of Your Move, said: “ The minor slowdown in demand for let accommodation in September was sparked by the global interest rate cut and resulting confidence boost – our sales side saw a small lift. But rental demand overall this year has been extraordinary – this is the busiest we’ve ever been in lettings.”

Demand for rented accommodation is growing strongly year-on-year, with the number of new leases beginning +53% higher than in October 2007.

Newnes said: “ People don’t stop needing a roof over their heads because there’s a credit crunch. We’re convinced the boom in demand for rented homes is a direct result of the lack of mortgage finance available. Despite the -1.5% cut in the base rate, you have to remember there are only 2,000 mortgage products on the market today compared with 16,000 this time last year and it’s all the best deals that have been pulled. People who would normally buy are renewing their leases and staying put in rented accommodation until the market stabilises.”