More Brits choosing to rent

Posted: 25 Jan 2008 10:46:27 GMT

More people are choosing to rent property as the costs associated with buying a home continue to rise.

More people are choosing to rent property as the costs associated with buying a home continue to rise.

New research from the Chartered Institute of Housing (CIH) and the Building Societies Association (BSA) shows that first-time buyers today (FTBs) have to spend more of their income to buy a home than they did at the peak of the last housing boom in 1990.

It is good news for buy-to-let property investors, who are benefiting from increased demand for rented accommodation.

"Private renting has become far more competitive as an option for households compared to the cost of 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," said Steve Wilcox, professor of housing policy at the University of York and author of the review.

"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," he added.

The review found that FTBs today spend 35 per cent of their income on mortgage costs, compared to just 34 per cent in 1990.

© Houseladder Ltd