Renting was a huge market in 2011

The market for private rental homes in 2011 was significantly stronger than it was a year earlier, as demand for the properties continued to rise in an uncertain economic market, the results of a new study have discovered.

According to Countrywide, the number of people registering to join the private rental market as tenants saw a massive increase throughout the year, as people did not feelas comfortable with buying as they had in the past. Job security and the continuously poorly performing market are commonly seen as the most prevalent barriers to home buyers.

The report states that, throughout the course of 2011, there was an increase in the number of new tenants coming to the market of 275,000 across the UK property market.

This number was almost a quarter higher than the number of new tenants registering for private property to rent a year earlier, as 24 per cent more people decided that buying was not the correct option for them.

In London, the biggest increases of any area in the country were seen, as the number of new tenats registering rose by 35 per cent. This could increase this year as Cental London Portfolio recently reported that London property is likely to rise in price, with investors not looking to sell, and the demand for prime London homes remaining high.

On the other hand, new tenant registering grew by just 21 per cent in the south of England, the lowest figures in the country.

Nick Dunning, commercial director at Countrywide, said: "With a record number of tenants entering the private rental sector, there is a vast shortage of properties available in all areas of UK, which could potentially fuel a steady rise in rent prices throughout 2012."

He went on to say that this could mean that rental prices will rise throughout 2012 with demand staying high.