Rising rents hit FTB deposits
Rising rents mean that prospective first-time buyers (FTBs) who are currently in the letting market will struggle to save up deposits.
That's according to new research from buy-to-let mortgage lender Paragon, which found that monthly bills for a rented home have risen by 11.7 per cent across Britain during the past year.
According to Melanie Bien of Savills Private Finance, landlords are in a position to increase rents because of the surge in demand for lettings in the current property climate.
"Landlords are trying to ease the pain of rising buy-to-let mortgage costs by increasing rents," the Times quoted her as saying. "They can do this because rental demand is greater than supply."
But for first-time buyers who still hope to find property for sale in London and elsewhere, this ultimately means the dream of homeownership is gradually slipping away.
"Those first-time buyers who are being forced to rent for longer because they cannot afford to get on the property ladder are also paying more rent in the meantime, making it harder for them to save up a deposit to purchase a home of their own," Ms Bien concluded.
Published 26th June, 2008
© 2008 Estates IT Limited
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Rising rents mean that prospective first-time buyers (FTBs) who are currently in the letting market will struggle to save up deposits.