26
Jun
First-time buyers hit by rising rents
After being hit by tighter lending conditions and the disappearance
of the 100 per cent mortgage, prospective first-time buyers are now
being affected by rising rents, it has been claimed.
Commenting on new figures from buy-to-let mortgage lender Paragon
that show that rents have risen by up to a third in some areas, the
Times suggested that this will inhibit their ability to save for a
deposit.
Paragon found that monthly bills for a rented home have increased
by an average of 11.7 per cent across the UK, while tenants in the
south-west are paying nearly 30 per cent more in rent than they
were a year ago.
Meanwhile, the newspaper noted that at the same time, banks have
increased rates, raised the cost of borrowing and demanded
ever-bigger deposits.
It spoke to Mike Goddard, chief executive of Belvoir, who said:
"The lettings market is booming and what that's doing is pushing
rents up. Demand is increasing from first-time buyers, who are
finding it even more difficult to get into the market."
Last month the Association of Residential Letting Agents found that
over the past three months, the proportion of letting agents
reporting that demand for rental properties is outstripping supply
has remained at a historic high of 39 per cent.
