Property Letting Up 24%
According to the Association of Residential Letting Agents, property letting has rapidly increased during the last quarter of 2009. In their research the Arla discovered that 41% of letting agents had more potential tenants on their books than properties offering a dramatic increase of 24% from the 3 months leading up to September.
Thrust onto the property rental market following a growing ‘property for sale’ shortage and 60%-70% LTV mortgages, more than 50% of landlords feel that these new tenants have entered onto the rental market ‘reluctantly’ after failing to invest and get on the property investment ladder.
Speaking on the issue, the National Association for Estate agents believes the main problems hindering first time buyers is their inability to raise 20%-30% deposits and the lack of suitable housing currently available on the market.
Faced with stricter lending criterion, lenders are essentially doing what they should have done 2 years ago and are now being careful of who they lend too. However, this has proved to be too little too late. Instead of bringing stability to their financial situation, lenders are now creating a different problem by preventing first time buyers from investing and ultimately revitalising the market.
The fact that builders simply weren’t building during 2008 hasn’t helped matters either as they have created a shift in the supply/demand balance that has ultimately triggered 9.4% property price increases and have made property investment even more unattainable for homeowners…
Of the new tenants to enter onto the rental market, the Arla believe they mainly consist of homeowners who have been forced to sell their homes either due to financial instability or a new job.
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Tags: estate agents, first time buyers, invest in property, letting agents, mortgage payments, property for sale, property investment, property ladder, property market, property prices
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