Professionals renting for longer as house prices remain unaffordable

14 2007
Rising house prices across the UK is prompting many potential first-time buyers to rent for longer periods, with demand from tenants set to be strong for the foreseeable future.

According to new statistics from the Council of Mortgage Lenders (CML), the average age of a first-time buyer now stands at 29 and this figure is steadily creeping up as the affordability crisis shows no signs of easing up.

Commenting on the current situation, the editor of the landlord advice publication Property Hawk stated explained that uncertainty over property prices could see growing numbers of professionals opting to rent rather than taking the risk of buying a property.

"If anything, the uncertainty with house prices will put off potential first-time buyers – on the basis that they could, potentially, buy a house cheaper later on," Chris Horne said.

"Therefore they're more likely to rent for next year. I think rental demand will be growing and strong into 2008, as people sit back and wait to see what happens with the market."

An earlier report from the CML also revealed that those who have managed to get onto the property ladder for the first time are now spending 20 per cent of their monthly incomes just on making the interest payments on their mortgages. ADNFCR-1219-ID-18394903-ADNFCR

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