Those letting property to increase?

Posted: 06 Jul 2010 12:02:29 GMT

A number of potential first-time buyers may find they have to let properties instead due to the escalating cost of purchasing a home, one expert has claimed.

James Davis, chief executive officer of Upad.co.uk, noted the problem will be compounded as the majority of people leaving university or higher education will already be in debt.

The average wage and house prices will continue to grow apart until leasing will become the only option for some, he continued.

"If you put all those bits together, renting is an increasingly preferred form of tenure rather than going into the housing market," Mr Davis added.

According to mortgage lender Kensington, nearly two-thirds of people who are living in privately-rented accommodation believe they will not be able to afford any houses for sale in the next five years.

Timothy Lambert, head of consulting at Ducalian, recently said he expects mortgage approvals to remain static during the rest of 2010.


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