More young professionals renting not buying

26 2007
Growing numbers of young professionals are turning to rental accommodation as a result of being priced out of the property market, new figures show.

According to the latest statistics released by the Council of Mortgage Lenders (CML) the number of mortgages approved for house purchases dropped "significantly" over the past month to just 44,105 in comparison to the 53,997 granted in September.

Total mortgages lending in October came to £5 billion, down from September's total of £5.9 billion, as Britons looked to the rental sector rather than stretching their finances in an effort to get onto the property ladder.

Commenting on the figures, BBA statistics director David Dooks said: "October's data provides evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing.

"Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply," he added.

Analysts widely predict that the trend will continue as the problem of affordability facing prospective first-time buyers continues. ADNFCR-1219-ID-18369483-ADNFCR

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