'Mortgage woes send would-be buyers to landlords'
News Category: Industry News
Published: 20-Nov-2008
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A lack of affordable mortgage deals is forcing many would-be homebuyers to the rental market, it has been suggested.
Many Britons are finding it difficult to finance a suitable mortgage deal and are switching to private-rented accommodation as a result, said Steven Hilton, media relations manager for the National Landlords Association.
His comments after statistics from HM Revenue & Customs (HMRC) have showed that the number of property sales in the UK fell by 53 per cent over the last year.
Mr Hilton said: "Demand for rental property remains high across the UK as more potential buyers turn to the private-rented sector as it becomes increasingly difficult to get hold of mortgage finance."
The HMRC study also showed that property sales were down from 126,000 in September 2007 to 59,000 in the same month this year.
UK properties have lost an average of 13.7 per cent in value over the last 12 months, according to the latest Halifax house price index.
But the price falls might have provided good opportunities for many landlords to add properties to their portfolios.
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