RENTS have risen since last year fuelled by rising demand from foreign workers brought in by the wave of new companies that have set up in Bermuda since the September 11 terrorist attacks.

That is the view of Rego Realtors rental manager Daina Outerbridge who said there was no longer any need for her company to advertise studio or one-bedroom apartments because demand was overwhelming.

With 26 new insurance companies having incorporated on the island within the last four months alone, more guest workers are likely to be needed.

And the trend is expected to continue. Labour & Home Affairs Minister Terry Lister said last month that he anticipated the Government would need to issue around 6,000 new work permits over the next ten years.

That may be good news for landlords, but the situation is growing increasingly difficult for residents seeking a place to live.

Earlier this week, a group calling itself 'The Concerned' spelled out those difficulties in an e-mail circulated around the island.

Their message urged the public to protest against the high cost of housing by driving with their lights on at all times this week and beeping their horns for three seconds when they passed Parliament.

Ms Outerbridge said: "Over the last year rents have risen because of the people coming in with the new reinsurance companies that have been set up since September 11.

"That is what has driven up rents to where they are now and what is keeping the market strong. People are also coming in to work for the mutual funds companies as well.

"There is still growth and housing them all is keeping the market strong."

Ms Outerbridge said the rental market had stabilised over the past six months - at an "extremely strong" level.

"Anything that is priced right goes quickly. One-bedroom apartments are like gold dust and I wouldn't even dare advertise them in the newspaper," added Ms Outerbridge.

She said her company kept a database of more than 100 people looking for rental accommodation, from which tenants were usually found.

A colour advertisement published in The Royal Gazette this week by Coldwell Banker JW Bermuda Realty showed more evidence of high rents.

Of the 48 properties advertised for rent, only six were priced at less than $3,000 a month.

But Cecilia Edwards, rental representative for Coldwell Banker JW Realty, had a different view from Ms Outerbridge.

"Over the last year I would say that rents have stabilised," said Ms Edwards. "We are renting a one-bedroom today for $1,500 that we we were advertising last year for $1,500. It just depends on the amenities."

When asked whether she thought the expansion of the international business sector had had any effect on the rental market, Ms Edwards said she had seen evidence of new accommodations being made available to meet increasing demand.

"I would say everything is based upon supply and demand," she said. "I know there have been quite a few new developments, new apartments people have been renting out."

And some landlords had downsized their units to meet the demand for smaller places.

"That is what we have been seeing, but I can only speak for my company," added Ms Edwards.

It's not only the rental market that is buoyant. According to experienced realtor Buddy Rego, the island's real estate buying market has hit an all-time peak as demand outstrips supply.

He said more properties were selling this year than last year, quicker and for more money.

"The real estate market is at a peak, and we are recording the highest property prices ever," said Mr. Rego.

"The market is clearly on the up. In terms of units sold, looking at the figures for residential units, not including condos, 212 houses were sold in 2001. In the first six months of this year, there were 129 sold.

"There is still a great demand for residential property and investment property. Mortgage rates are attractive and so people are buying.

"Our problem is that there is not much land and we are not making any more of it. Demand is still in excess."

A family of four looking for an adequate home would need to pay in the region of $500,000 to $600,000, estimated Mr. Rego.

Prices for building plots are also high and climbing. Mr. Rego said land had sold at an average of $405,000 per lot this year and a half-acre plot would typically go for between $350,000 and $500,000.

"Investors see our real estate market as more resilient than many other places," said Mr. Rego. "We tend not to experience declines in value, more of a levelling off."

We invited Labour & Home Affairs Minister Terry Lister and Housing Minister Sen. David Burch to contribute to this story by means of questions sent to them on Wednesday. Neither had responded by press time yesterday.