Renting sector benefits as affordability crisis continues |
13 2008 |
| It looks likely that the high demand for rental property will continue for some time yet as new figures show that even more potential buyers are being priced out of the UK property market. According to the latest statistics published by the Council of Mortgage Lenders (CML), the number of loans made for home purchases fell by 22 per cent over December in comparison to the month before. The fall from 78,000 to 62,000 was attributed largely to ongoing affordability issues facing would-be buyers, while several other studies have concluded that a significant number of these are choosing to rent rather than struggle onto the property ladder. CML director general Michael Coogan said: "The decline in lending appears to be driven more by funding constraints than lower consumer demand." The new report also highlighted the worsening situation facing first-time buyers. While in December 2006, first-time buyers were typically contributing 17.9 per cent of their income towards mortgage interest, this level now stands at 20.7 per cent.  |
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