Only a large price correction will cause tenant numbers to drop

29 2008
A large proportion of young professionals will remain in the rental sector unless the UK housing market experiences a significant correction in the near future, experts have suggested.

Just recently, the Home Builders Federation reported that, while some 223,000 new homes were needed across the UK last year, just 160,000 were actually built as developers struggled with rising costs.

This ongoing restriction of supply has ensured that, to date, any falls seen in the property market have been relatively slight and the chief executive of Firstrung has now argued that, unless this changes, thousands of young professionals will continue to struggle to get a foot onto the property ladder.

"The problem is, the state the housing market is at now, it is ripe for a considerable correction and that is the best thing that could happen for first-time buyers," Paul Holmes said.

"House prices correct to a level of achievable affordability while they can save up a deposit quietly and efficiently in the background and then hopefully their deposit, together with a reasonable house price and a reasonable level of mortgage, means they can afford to buy their first property."ADNFCR-1219-ID-18706504-ADNFCR

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