Growth predicted in rental market as EPC approaches
Article by: Stephen Callaghan
In newly published research carried out by the Chartered Institute of Housing and Building Societies Association, the UK Housing Review 2007/08, shows a significant predicted growth in the rental homes market.
The research shows that average mortgage costs compared with income for first-time buyers are now higher than they were at the peak of the last housing boom in the 1990s. Tenants now pay almost a third less than the repayments on a 100 per cent mortgage for an average two or three-bedroom house highlighting the problems first time-buyers in particular have in trying to get on the housing ladder.
Commenting on the news, Chief Executive of property-careers.com, Stephen Callaghan said: "While the forecast for residential sales is a slowdown into 2008, predictions highlighted in this new research is for residential lettings to grow significantly. This is welcome news to the home inspection industry as residential landlords prepare the way for compulsory EPCs (Energy Performance Certificates) on properties let after October 2008."
He goes on to say "Demand for rented accommodation is 25 per cent higher than for bought homes and many commentators are now arguing that expanding the private rental sector in Britain is a better way to solve the housing crisis than building more homes to buy."
The news comes at a time when buy to let has established itself as a major part of the UK housing scene.
Figures produced by the Intermediary Mortgage Lenders Association this week show that Buy to Let Mortgages accounted for 12 per cent of the residential mortgage market in 2007.
Co-author of the recently announced UK Housing Review of the Rented Sector Professor Wilcox said: "Private renting has become far more competitive as an option for households compared with the cost of buying.
The sector has grown by 21 per cent in the past five years across the UK and is fulfilling a significant role in the housing market. With the rates of population and household growth outstripping current and planned new house building, we are likely to see the continuing growth of the private rented sector."
