Low mortgage availability 'increasing renting'

Date:Thursday 25th February 2010
Author: Susanna Kavka

The difficulty of obtaining a mortgage is forcing more people to look to renting as an option, it has been stated.

Alan Ward, chairman of the Residential Landlords Association, said that there has been an increase in the number of people who are renting their properties, which is partly due to the difficultly of obtaining a loan.

"The availability of mortgages and the level of deposits required - not less than 20 per cent - means first time buyers remain renting for longer," he stated.

In addition to this, there are fewer homes being built, with the number standing at 60,000 last year, Mr Ward explained. This is having the impact that people who do not need to move to a new property are opting to stay put and rent.

A report by Communities and Local Government found this month that owner occupation fell to 67.9 per cent, accounting for 14.6 million people in 2008-09.