2012 is seeing the emergence of the Renting Generation according to a south London property expert.

Job fears and the difficulty in obtaining mortgages has led to more people opting to rent than buy, pushing up demand to record levels for properties to let.

And it’s not just being driven by young people who can’t get a mortgage – families are choosing to rent, leading to a scarcity of stock and a premium on rents.

“We’re seeing a real culture change, with many people viewing renting as something they’d do before they’d buy,” said Ross Jezzard of the Association of Rental and Letting Agents (ARLA).

“We’re much more of a rental generation – there’s no longer a stigma about renting and people find it much more the norm.”

As the ARLA representative for south London, Ross says member agencies are noticing an increase in demand for lengthier rental agreements of up to two to three years.

“People want the security of longer agreements, indicating that they see renting as a long-term proposition,”said Ross.

ARLA says the private rental market in south London has grown by at least 100 per cent in the last year, with some agents reporting an 126 per cent rise.

In Epsom, Cairds is opening a new branch dedicated to lettings after astonishing 180 per cent growth in 2011.

“Our lettings business rose by 180 per cent last year,” said Cairds lettings manager Claire Spelman.

“The demand is spread right across the board, from people looking for flats to families seeking larger homes to rent. There’s a real cross section of reasons for renting too.

“Many people don’t want to commit to buying a house in the current market and opt to rent first.”

Caird’s new office in Epsom High Street, creating three new jobs, will accommodate the sales team while its West Street branch around the corner will concentrate on lettings.

The demand for rental properties in central London is adding to the market growth in south London.

Ross Jezzard says rents in the capital have risen by up to 20 per cent, pushing renters south, which in turn creates demand and competition for properties locally.