Developers resort to renting out properties
News Category: Industry News
Published: 18-Sep-2008
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Developers and housebuilders are opting to rent out property as they find it increasingly difficult to find a buyer for newbuilds.
The trend was remarked on by the Bank of England, which attributed it to developers looking to accrue income until demand for home purchases returns.
Roger Humber, housing spokesman for the National Federation of Builders, concurred that the practice is on the rise.
He told Channel 4 News: "I am very aware of the practice among housebuilders who are unwilling to accept losses to rent properties until investors or private buyers return to the market.
"In some situations housebuilders are lowering their prices in order to sell, but many who can't afford to do that are renting and waiting for the upturn."
News of the findings come as data from the Council of Mortgage Lenders showed that lending fell to a three-year low in August, inthe latest sign of dwindling demand for property buying.
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