Lending restrictions see rental popularity increase

26 2008
Growing numbers of British professionals who would otherwise have attempted to get onto the property ladder in 2008 are likely instead to stay renting as their borrowing options are restricted.

According to the latest figures from financial experts, while would-be buyers had the option of choosing from almost 13,000 mortgage products just seven months ago, today this figure has plunged to just 6,200.

This decrease of 60 per cent comes as lenders tighten their belts in the wake of the global credit crunch.

Though house prices have ceased to increase rapidly in most parts of the country, confidence in the economy has fallen to a new low, with many people opting to stay in the rental sector for the short-to-medium term.

Just recently, the Council of Mortgage Lenders reported that the number of new mortgages being taken out by new buyers is now at its lowest level for nine years, suggesting many people are either living with their parents for a greater period of time or choosing to stay in the rental sector. ADNFCR-1219-ID-18522855-ADNFCR

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