Renting the answer as buying becomes even less realistic

20 2008
Professionals who would otherwise be looking to purchase a property are likely to stay in the rental sector for some time yet as the general rise in the cost of living eats into their potential deposit savings, new figures suggest.

Research carried out by Abbey Mortgages revealed that around four times as many prospective first-time buyers are now taking money out of the money they have put aside to put down a deposit in comparison to just one year ago.

Added to this, 42 per cent of this group are also dipping into their normal savings accounts simply to cope with more expensive day-to-day costs, meaning that the current demand for rental property, which is at a near-record level, is set to remain.

Director of Abbey Mortgages, Nici Audhlam-Gardiner, explained: "First-time buyers may be more tempted to dip into their deposit savings this year because of the uncertainty in the market and prospect of falling house prices."

The average Briton now needs to find a deposit of £22,800 in order to get a foot onto the property ladder, the company also reported, one factor why millions are choosing to rent at present and see if house prices fall over the next couple of years.ADNFCR-1219-ID-18518411-ADNFCR

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