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25 Jan 08 - More People 'Now Looking To Rent'
Buy-to-let investors will be cheered by the news that more
people are looking to rent as the cost of a first-time mortgage
continues to rocket.
The UK Housing Review 2007/2008 found the average first-timer
had to spend 35% of their income on a mortgage during the
third quarter of 2007. This is an increase on the previous
record of 34% seen in 1990.
But the report found renting costs have only risen in line
with earnings, meaning it is "substantially" cheaper
to rent than to buy.
The research by the Chartered Institute of Housing and
the Building Societies Association found rents are around
36% less than the mortgage cost of a comparable property.
Adrian Coles, director general of the BSA, said: "With
first-time buyers finding it increasingly difficult to get
a foot on the housing ladder, the private rented sector
is providing accommodation to increasing numbers of people."
The study comes after the Government launched a major review
into how to improve the private rented sector for landlords
and tenants.
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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