Prospective buyers 'increasingly choosing to rent'
Published: 19-May-2008
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As the impact of the credit crunch continues to take effect in the UK property market, an increasing number of first-time buyers are opting for private rented accommodation.
That is according to the latest buy-to-let index from Paragon Mortgages, published today (Monday, May 19th), which revealed that landlords have seen significant rental rises over the past year as a result of greater demand.
The figures indicate that rents have experienced a year-on-year increase of almost 14 per cent, climbing to £12,048 last month.
John Heron, Paragon Mortgages' managing director, commented: "The recent lack of mortgage availability for potential first time buyers, as well as a fall in confidence in the housing market has caused more people to stay in private rented homes for longer.
"If the situation doesn't improve for first time buyers, we will soon arrive at levels of demand for private rented homes that we previously wouldn't have expected to see for many years. The trend is definitely accelerating."
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