Renting numbers up as affordability crisis worsens

12 2007
Growing numbers of professionals are choosing to rent a property as the affordability crisis facing prospective first-time buyers shows no sign of easing.

New figures released by the Council of Mortgage Lenders show that those who want to get onto the property ladder are now looking at spending more than 20 per cent of their monthly income on paying off the interest on their mortgages alone.

This represents the highest level since 1992, with the CML stating that it expects the mortgage market to be "subdued" over the coming months as people choose to rent rather than stretch themselves financially.

Earlier this month, the London Housing Federation (LHF) reported that the capital has now become a "city of two halves", with the gap between those who are able to buy a property and those who cannot afford to do so steadily widening.

"House prices in London have reached new highs, leaving thousands of first-time buyers unable to get their foot on the ladder," concluded Olivier Powis from the LHF. ADNFCR-1219-ID-18391168-ADNFCR

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