Renting is a 'far more competitive option' than buying
Published: 13-Feb-2008
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The decreasing accessibility of the property market has provided a boost for buy-to-let landlords, it has been claimed.
According to the UK Housing Review, published recently by the Chartered Institute of Housing (CIH), rising mortgage costs have priced many prospective buyers out of the market, leading them to seek out rented accommodation.
The survey found that in the third quarter of last year, first-time buyers were dispensing up to 35 per cent of their income to mortgage costs.
This figure is higher than that seen at the peak of the last housing boom in 1990.
In contrast to rising mortgage costs, private rents have kept pace with earnings and remained relatively low.
The Press Association reported that Steve Wilcox, professor of housing policy at the University of York and author of the review, said that private renting had become a "far more competitive" option compared with buying.
"The sector has grown by 21 per cent in the last five years across the UK and is fulfilling a significant role in the housing market.
"With the rates of population and household growth outstripping current and planned new house building, we are likely to see continuing growth of the private rented sector."
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