Are house prices too good to be true?

As the number of rental properties in the UK increases, prices tenants can expect to pay are falling, new research has suggested, which may be good news for people looking for flats to rent in Shoreditch or another part of London.

The research by Nationwide claims that there are currently more rental opportunities on the market due to the rise in "accidental landlords" - people who made the decision to rent out their homes when they were unable to sell them.

Furthermore, the study noted that UK house markets are now equal to those seen a year ago.

However, the BBC's economics editor Stephanie Flanders has asked whether this is all too good to be true.

"One way or another - whether through higher lifetime taxes or unemployment at a crucial time in the career - young people are going to be paying for this crisis for a long time to come," she stated.

Ms Flanders added that in light of this, it would be "no bad thing" if such Britons could come away with an affordable home.

However, they may wish to continue renting, after the Tenant Services Authority revealed 80 per cent of respondents felt that being a tenant was better than owning their own home.

Written by Martyn Glynn

Published 2nd October, 2009

© 2009 Estates IT Limited