Mortgages dearth bumps up rents

| September 30, 2009 | 0 Comments
Mortgages dearth bumps up rents

The lack of mortgages available to first time buyers is bumping up rents as would-be homeowners struggle to get a foot on the housing ladder, an industry expert claimed.

Nicholas Leeming, director of propertyfinder.com, said the credit crunch is good news for landlords because it will inflate their income.

“Rent levels have been recovering in recent months and demand from frustrated would-be buyers will only push up rents further,” he said.

According to Leeming, the lack of mortgage funding has reduced the expectations of would-be homeowners making them more likely to continue renting.

“Many people are expecting they won’t get a mortgage and this is taking the energy out of the market,” he said.

Leeming made the comments after propertyfinder.com released figures showing stock levels of rental properties have fallen by 6.2% this month compared to October.

He added that the situation is the opposite of 12 months ago, when landlords struggled to sell their properties and so put them all into the rental market, forcing down rent prices.

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