England 13/09/2012 – The level of property lettings and the price of rent are both on the rise in most of the UK
The housing market in the UK has traditionally been quite different from that in the rest of Europe. Overall, there is a smaller percentage of property lettings in the Uk than there are in similar countries in the rest. People in the UK have, for many decades, decided to buy their homes rather than rent them. However, for the past five years or so the trend has been going the other way. UK residents are following their European cousins and are now renting more than they have done in the past.
There are several reasons for this, but they all boil down to one thing and that is finances. Most people would prefer to own their own home and for the money they are paying out for the roof over their head to result in the owning of an asset. Unfortunately, for various reasons, they cannot buy a home. Instead, they have no choice but to rent.
The deposit buyers have to save has gone up instead of down. This is despite the fact that house prices in most of the UK have gone down, which should have led to people needing a smaller pot of cash to buy. The problem is that the banks now require a bigger deposit. In the past 100% mortgages were available, now they require 5-15%. It is not just first time buyers who are caught in this loop. Even people who want to move home have less equity because the value of their home has dropped. If they need a bigger home they often do not have enough of a deposit, so can end up renting to cope with a growing family.
The cost of property lettings is also on the rise
Unfortunately, an increase in demand is leading to the cost of rent soaring, which is making it difficult for families to find property they can afford. Luckily, firms like Rent The House are adding tools to their websites to allow consumers to search on the cost of rent as well as location. This is helping people to find the best value accommodation and pay out less in rent.
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