The long awaited recovery in the lettings market is now underway, according to new research published by property consultants FPDSavills.

Following two years of falling or static rents across much of the country, the report is welcome news to buy to let investors.

Rental supply may continue to rise, but it is the increasing demand from tenants that is currently driving the rental market recovery. Conflicting views over the outlook for house prices and the high entry costs of housing mean that a growing proportion of first time buyers are staying put for the time being and increasing the demand for rented accommodation.

FPDSavills Research believes that lower levels of demand from first time buyers are likely to remain a feature of the market and in the short term the outlook for the rental market looks positive.

Indeed in a recent survey carried out by the Council of Mortgage Lenders, there appears to be a steady decline in the proportion of young people aspiring to become owner occupiers within the next 2 years. In 1983, 97% of under-25s said they wanted to own their own home. Today, this figure stands at 37%.

Indeed, the report indicates that rental growth will continue to improve, and although we might not see rents rocket, the likelihood is that they are likely to rise in line with earnings.