More renters 'looking to buy property'

Posted: 01 May 2009 10:44:28 GMT

Demand for housing could be about to rise as renters look to take advantage of low property prices, a market expert has predicted.

The economic climate and the reluctance of lenders to offer high loan-to-value mortgages have caused a slowdown in the property market.

As a result, house prices have dropped by 15 per cent in the last 12 months, according to figures compiled by Nationwide.

Lucian Cook, director of residential research at real estate services firm Savills, feels that conditions are now reaching a point where they are attractive enough for buyers to return to the market.

"Renters with cash sitting in the bank, and sensing that the bottom of the market is within sight, are beginning to consider buying," he said.

The cost of renting is now very close to the cost of buying a home due to the impact of falling house prices and lower interest rates, Mr Cook added.

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