Lack of career confidence strengthens rental market
Fears over job security and a general lack of financial surety are causing increasing numbers of people to consider renting rather than buying a home, according to the National Landlord Association (NLA).
Chris Norris, policy manager at the NLA, said that with the economy still in a fragile state, opting to rent is proving to be a "very flexible, fluid option" for those who are looking to future-proof themselves against a change in their circumstances.
As such this feeling of uncertainty among those in the property market has seen rental demand soar in recent months.
With the numbers of unemployed in the UK now at 2.49 million it is easy to see why people are concerned about their prospects and are therefore reluctant to commit to buying a property when a change of job may be just around the corner.
And even if access to finance is not an issue for those looking to make a UK property investment, this may not be enough to make people take the plunge, as Mr Norris points out.
"Mortgages and loan-to-value (LTV) ratios that are available obviously have an impact, because people need significant deposits to get on the ladder. But it is also a confidence issue - people need to be pretty confident about where they want to live before they go and buy it, even if they can attract mortgage finance," he said.
Another reason why people may turn to renting according to the NLA policy manager is that it allows them to "try out" a particular area before they decide to invest in a property there.
The rental trend may well continue for the foreseeable future as figures released today by the Council of Mortgage Lenders show that lending remained subdued in July, down one per cent on June's figures and down six per cent on the same time last year.
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