In February 2009 The Abbey issued a report that revealed for several parts in the UK, for first-time buyers with a deposit of 25 per cent or more thinking of buying a property it would be cheaper than to rent it thanks to current economic developments. With rental prices in most areas decreasing since last year and the standard of rental property rising in a bid to compete with tenants, renting may well be the longer term answer.
Adfero have also recently carried out a poll which found that out of those questioned 58% said that if they had to move now, they would choose to rent opposed to buy, concerned of possible future fluctuations in the property market. A significant number additionally added that while they feel now is a good time to buy, they were unable to take a mortgage as they have not been able to raise the required deposits since the deposits required by lenders have increased.
Whilst this may not be great news for the housing sales market who are somewhat reliant on first time buyers, for Landlords and Investors this is indeed good news.
It seems that the UK may be entering a phase of adopting to more European attitudes where there is less emphasis on home ownership from an younger age and people enter long time rental contracts choosing to buy later in life once deposits have been saved for etc - it is also the trend that those owning their own often own an investment property also, thus keeping the supply for the demand for property to rent.
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