Rising rents hit FTB deposits
Rising rents mean that prospective first-time buyers (FTBs) who are currently in the letting market will struggle to save up deposits.
That's according to new research from buy-to-let mortgage lender Paragon, which found that monthly bills for a rented home have risen by 11.7 per cent across Britain during the past year.
According to Melanie Bien of Savills Private Finance, landlords are in a position to increase rents because of the surge in demand for lettings in the current property climate.
"Landlords are trying to ease the pain of rising buy-to-let mortgage costs by increasing rents," the Times quoted her as saying. "They can do this because rental demand is greater than supply."
But for first-time buyers who still hope to find property for sale in London and elsewhere, this ultimately means the dream of homeownership is gradually slipping away.
"Those first-time buyers who are being forced to rent for longer because they cannot afford to get on the property ladder are also paying more rent in the meantime, making it harder for them to save up a deposit to purchase a home of their own," Ms Bien concluded.
Published 26th June, 2008
© 2008 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
Streatham town centre to be improved by BID?
Major improvements could be made to Streatham town centre thanks to a new business partnership.
Read Article ... Published on 25th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Barking Splash Park opens this weekend
Barking Splash Park will be free to use this weekend (May 25th-27th) to mark its opening.
Read Article ... Published on 24th May, 2012
Southwark estates to get cheaper energy bills
Residents in Southwark can look forward to cheaper energy bills thanks to the creation of a new underground green network.
Read Article ... Published on 23rd May, 2012
Enfield £1.3bn masterplan unveiled
A masterplan has been unveiled that will see a 200-acre site in Enfield regenerated as part of a £1.3 billion plan.
Read Article ... Published on 23rd May, 2012
Londoners encouraged to grow their own fruit and veg
People in London are being encouraged to grow their own fruit and vegetables.
Read Article ... Published on 22nd May, 2012
Merton 'embraces green improvements'
Merton is now a cleaner, greener location to live in thanks to the implementation of the Wandle Valley Low Carbon Zone (LCZ).
Read Article ... Published on 22nd May, 2012
London house prices rise by 1,782% in past 35 years
London house prices have increased by 1,782 per cent in the last 35 years.
Read Article ... Published on 21st May, 2012
Poplar's Chrisp Street to get £100m regeneration
Some £100 million is to be spent regenerating the Chrisp Street area of Poplar in Tower Hamlets.
Read Article ... Published on 21st May, 2012
Rising rents mean that prospective first-time buyers (FTBs) who are currently in the letting market will struggle to save up deposits.