Average first-time buyer 'cannot afford mortgage'

Date:Wednesday 2nd June 2010
Author: Max Freedman

Mortgages are out of reach for many first-time buyers, according to one sector commentator, who claimed this is one of several factors driving rental demand.

Tom Entwhistle, director of LandlordZONE.co.uk, highlighted the current uncertainty in the jobs market and a drop in supply in the industry as trends that are creating a "hardening rentals market".

He made these remarks following research by the Royal Institution of Chartered Surveyors, which indicated low levels of supply are forcing rent prices up for consumers.

In his view, it is no surprise that demand for rental properties is high and he predicted rents should hold steady in the future if not rise further.

Mr Entwhistle explained: "We are in an uncertain period with worries about the economy once again, brought on by the euro crisis, plus a whole host of new measures to be introduced by the new government."

He also suggested many "reluctant landlords" may be re-entering the market due to the economic situation.