Landlords benefit from lack of affordability

Posted: 14 Feb 2008 10:42:05 GMT

Levels of owner-occupancy in England fell in 2007, spelling good news for buy-to-let property investors.

Levels of owner-occupancy in England fell in 2007, spelling good news for buy-to-let property investors.

Halifax has revealed that the number of owner-occupied households fell by a record 83,000 in the year.

It is the second consecutive year of falls and will be welcomed by landlords who are benefiting from increased demand for rented accommodation.

The biggest problem, particularly for young buyers, is affordability, with landlords set to benefit by offering a cheaper way of living.

"The fall in the total number of owner-occupied households in England in 2007 largely reflects the increasing affordability difficulties faced by many potential purchasers as a result of the rapid rise in house prices in recent years," said Martin Ellis, chief economist at Halifax.

"The figures for owner-occupancy clearly demonstrate that these affordability issues are most pronounced amongst younger people and in southern parts of England," he added.

The Association of Residential Lettings Agents recently revealed that rental yields increased in January.

© Houseladder Ltd