First-time buyers 'forced to rent for longer'

Posted: 25 Feb 2010 11:05:27 GMT

First-time buyers in the UK are being forced into renting for a longer period than they would like, one expert has stated.

Alan Ward, chairman of the Residential Landlords Association, says that the recession has meant that fewer houses are being built and there is now a distinct lack of mortgage availability.

He states that many home loans are not available without a minimum 20 per cent deposit, which is forcing many first-time buyers into the rental market.

Mr Ward's comments come in response to a recent report by Communities and Local Government, which found that the number of rental properties has increased by approximately one million since 2001, while home ownership has decreased.

And he expects this trend to continue for some time: "We expect rental demand to remain strong for the foreseeable future."

The Association of Residential Letting Agents recently commented that there has been an influx of "reluctant tenants", after a shift in property supply and demand.

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