Renting soaring as new home sales drop

21 2008
The growing trend of UK professionals shunning the property market in favour of the rental sector seems to be taking its toll on homebuilders.

According to the latest figures released by the construction firm Persimmon, it sold just 5,501 properties over the first six months of this year, down from more than 8,000 over the same period of 2007.

This fall in sales comes in spite of the average cost of its properties falling over the same period, suggesting that even these declines are not enough to tempt many out of the rental sector.

Though the company remained upbeat, it admitted that, as the economic turbulence continues, it may struggle to fill its new homes with buyers.

"While at the beginning of April we experienced a significant market downturn, sales volumes since then have not deteriorated any further," a statement read.

"However, prices and margins remain under pressure as the industry seeks to dispose of stock housing," it added.

Just recently, the Council of Mortgage Lenders reported that the number of people taking out a loan for a home purchase has declined dramatically over the past 12 months.
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