Potential home buyers 'driven into rental market'
News Category: Industry News
Published: 06-Jun-2008
This article was brought to you by Rentman the premium property management system.
Uncertainty in the housing market is driving would-be purchasers into the rental market, one expert has suggested.
Commenting on the results of report for Hometrack, Professor Steve Wilcox of the University of York claimed that affordability is bucking the current rental trends.
He said: "The extra cost and general market uncertainty is driving would-be purchasers into the rental market where renting is currently cheaper than buying.
"This was not an option in the late 1980s as the rented sector did not exist in its current form."
However, with some economists forecasting house price falls of up to 12 per cent by the end of this year and further declines next year, this boost could be short lived.
According to Professor Wilcox's report, rental accommodation can be as much as 30 per cent cheaper in some areas of the country.
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