Forced into renting

Demand for rental property in the UK is reaching the peak now, with many people being forced to  put off their plans to step onto the property ladder because of a lack of loan deals on offer and deposit requirements.

Since a growing number of lenders are introducing stricter lending criteria, potential first time buyers have no other option but to rent a property.

The news emerged after the recent figures from the Association of Regulated Letting Agents (ARLA) showed letting demand zooming to an eight year high.

In the meantime, figures from John Charcoal demonstrate that first time buyers made up just 7% of the entire home owner loan market in September.

In addition, there are fears that if the FSA compel observance of their proposals to restrict lending, a great number of first time buyers will be locked out of the housing market.

Since first time buyers are considered to be the lifeblood of the housing market and if they can’t get a loan to buy their first property, the whole of the market will be shattered.

According to the comment made by Ian Potter of ARLA, over 70% of their agents have reported that people coming into their offices are being forced to rent due to the pressures imposed on would-be home buyers.

This state of things demonstrates that a whole generation has no other way out but to rent the property and the Government must take effective measures to change the situation.
 


Articles

The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.