FTBs 'finding it cheaper to rent'

Posted: 01 Apr 2011 13:24:50 GMT

A high number of FTBs are finding renting a cheaper solution than buying.

Many first-time buyers (FTBs) are finding it cheaper to carry on renting property, it has been claimed.

Lucian Cook, director of residential research at Savills, suggested a number of FTBs are struggling to put the money together in order to purchase a house of their own.

The industry expert pointed out: "If you add in job security issues, then clearly there is not going to be a lot of turnover in those lower tiers or lower rungs of the housing ladder."

He explained that the first-time buyer situation is very difficult at the moment, due to mortgage constraints playing a considerable role in the opportunity to raise enough cash for a deposit.

People who struggle to stump up this sum are likely to find they end up paying a much higher interest rate when they get a mortgage, Mr Cook added.

The Council of Mortgage Lenders recently noted the Budget's help for FTBs was welcome, but was not enough to re-energise the housing market.
 

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