Rental market offering solace to buyers

Posted: 17 Feb 2009 08:35:14 GMT

Research published by the Intermediary Mortgage Lenders Association (IMLA) has shown that 58 per cent of first-time buyers looking for a home in the final three months of 2008 failed to obtain a mortgage.

Of those, 80 per cent then opted for rental accommodation, highlighting the role that mortgage lenders are playing in the low demand for property at present.

Explaining the situation, Peter Williams, executive director of IMLA, said: "The first time buyer end of the market has been hit extremely hard by lenders tightening their [loan-to-values].

"For youngsters without a substantial deposit, the only alternative is renting. The private rented sector is going to have to pick up the slack."

With demand being forced to such a low by mortgage lenders, homeowners attempting to sell their property may benefit from doing so online.

Selling a property online could attract more buyers than traditional house sales, and so could bring about a higher offer from potential buyers.



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