BOOMING demand for rented homes has seen an independent Yorkshire letting agency with branches in Saltaire, Ilkley and Horsforth achieve its busiest month in its 18-year history.

Linley & Simpson, which has 11 offices across West and North Yorkshire, secured a record 401lets for its landlord clients last month.

This coincided with new research showing demand for rented property continuing to outstrip supply, pushing up the national average monthly rent to an all-time-high of £816, compared to £768 last year - although this figure is skewed by the pace of growth in London and is not reflected in Yorkshire where rises have been lower.

Nick Simpson, Linley & Simpson director, said the climate was triggering an increase in investors turning to buy-to-let properties as a home for their money, with returns outperforming bank interest rates.

He said: “Yorkshire very much remains in the throes of a rental boom. Investors are being spurred on by this high demand, wedded to new financial freedoms which allow money from pension pots to be channelled into property purchases for the first time.

“The resurgence of buy-to-let has been a dominant theme throughout 2015. And while this has improved availability, the increase in stock levels has not been able to move at the same pace as tenant demand in order to bridge this supply gap.

“Our own research shows that in many of our branch locations, such as Saltaire and across the Wharfe Valley, the number of people choosing to live in private rented accommodation is far higher than the national average. And it is a trend that is growing.”

As well as a growing number of new landlords into the market, Mr Simpson said more existing property owners were looking to expand their portfolios through releasing equity in their current properties.

He said the continuing popularity of buy-to-let comes was being maintained in spite of Chancellor George Osborne's surprise tax changes in his July budget which will reduce the amount of mortgage interest payments being deducted from rental income when calculating a property’s taxable profit.

Mr Simpson added: “The market conditions show that this threat has failed to dampen the appeal of putting spare cash into property - with the prospect of both capital gains and a healthy rental return.”

The latest regional business activity index from Lloyds Bank rose from 53 in September to 56.7 last month, representing a four month high in private sector activity, boosted by a marked rise in new orders along with the fastest employment growth for four months.

Leigh Taylor, Lloyds area director for SME banking, said regional growth in activity and new orders was ahead of the national average.