Demand for rental property continues
- 24th September 2008
- Renting Property News
Rental demand continues to grow at unprecedented levels with a rise of as much as 65% in the last 12 months.
This rise is attributed to the fall in mortgage lending which according to the National Council of Mortgage Lenders has fallen 36% in August compared to the same period in 2007. Gross lending totalled an estimated £21.8bn in August the lowest monthly figure since April 2005 and the lowest August figure since 2002.
Michael Coogan, director general of CML, says: These figures reflect the heightened uncertainty for both lenders an consumers in the mortgage market at present. Lenders are uncertain about future sources of funding and the cost of funding, while consumers are unsure about how much further and for how long house prices will continue to decline."
There were 33,000 approvals for home loans in July, compared to 115,000 in the same month in 2007. Commenting on these figures, David Newnes managing director of YourMove, says: If you can't get the finance to buy a house you're forced to rent."
However he continued: "We might expect the huge increase in demand for rental property to have driven up rents. But demand is being met by supply - sellers who won't accept depressed prices put their homes up for rent instead."
Sellers who won't accept depressed prices put their homes up for rent instead.
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