RSS FeedsMore pressure for first time buyers
2/05/2008
First time buyers could find getting on the property ladder or even renting a property becoming more and more difficult. Recent market news suggests that average UK rent for first timers is more than £1000.00. This alarming figure has been the outcome of rises over the last 6 months that equate to 12 per cent.
The credit crunch has certainly created entry barriers for first time buyers with many lenders now asking for greater deposits to obtain a mortgage. Whilst, the rental option clearly shows that the market has grown due to the mortgage barrier. Reported figures from landlords confirm that the rental market is at a four year high.
According to Director of mortgages at Paragon “The backdrop for buy-to-let remains positive across the country - potential residential purchasers are reluctant to buy in the current market or are unable to secure a mortgage and this is fuelling extra demand for rented accommodation.”
Unfortunately, the future outlook for first timers looking to rent a property is predicted to worsen based on data from Arla – the Association of Residential Letting Agents.