Demand for rental property 'to stay strong'
News Category: Industry News
Published: 14-Dec-2007
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Buy-to-let investors are likely to find that 2008 remains a good year for returns, as rental demand looks set to continue to be strong.
That's according to Chris Horne, editor of Property Hawk, who said that rising house prices have "largely fuelled the market for professional renters" as affordability is stretched for first-time buyers.
Recent figures from the Council of Mortgage Lenders revealed that the average age of a first-time buyer is now 29, as people must wait longer until they can afford a deposit or mortgage repayments.
"There's a dual effect of rising house prices, which prices more potential first-time buyers out of the market - which means they have to rent, and rent for longer than they would have done," he said.
What's more, uncertainty over whether house prices will continue to fall throughout 2008 means that these buyers may put off purchasing foranother year until the market looks more stable.
"I think rental demand will be growing and strong into 2008, as people sit back and wait to see what happens with the market," Mr Horne said.
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