Market uncertainty, not a lack of mortgages, driving rental demand

14 2008
Britons are not staying out of the property market due to a lack of available mortgage products but rather due to ongoing uncertainty over house prices, HSBC has argued.

In the past couple of months, the Council of Mortgage Lenders has reported that lenders have been taking products aimed at first-time buyers off the market as they make moves to shield themselves from the current credit troubles.

However, the banking giant has claimed that prospective buyers are able to get finance if they want it, but many are choosing to carry on renting until the market dip comes to an end.

Indeed, one in ten of those would-be buyers questioned said that they are putting off a move for at least six months, thereby driving demand for rental accommodation higher still.

Martijn van der Heijden, head of UK mortgages at HSBC explained: "There is a perception at present that banks are not offering mortgages. In fact, our latest study suggests that access to finance is not a major issue.

"Instead, many buyers are taking a wait and see attitude, naturally some feel uncomfortable buying a home which may be worth less in six month's time."
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