Surge in demand for rented accommodation

A significant proportion of home-movers are shying away from the property ladder due to the current economic climate, it has been claimed.

Simon Preston, chairman of Iammoving.com, said that there was "a lot of nervousness" in the market and insisted the prospect of a downward house price correction meant many people are opting to rent rather than buy.

"Some of it is purely common sense," he asserted. "Essentially there's a lot of nervousness in the market at the moment and the actual turnover of home-movers is down substantially, probably close to 30 to 40 per cent."

Mr Preston said jitters were running so high that many people who are already homeowners are considering cashing in on the value of their home prior to the widely-expected downturn.

He said: "Some people are thinking it might be prudent to sell then rent and hold on to the cash … in case those prices go down further. [This is] not a dissimilar mentality to people selling their stocks and shares, putting in the cash and sitting on their hands waiting to see what happens."

Iammoving.com recently estimated that almost one in five homeowners is considering selling up and switching to the rental market.

Published 7th April, 2008

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