Would-be buyers 'opt to rent'
It has been predicted that around 500,000 would-be first time buyers last year decided to use the private rented sector instead.
Some would have chosen flats to rent in Fulham and property to rent in Wandsworth, while others would have opted for homes in other parts of London and the UK.
The study, conducted by the Letting Protection Service (LPS), indicated that 29 per cent of tenants abandoned plans to purchase their first home because of the current economic climate.
Last month, the National Association of Estate Agents published research suggesting the opposite - it said that first-time buyer confidence had returned to the property market.
Kevin Firth, director of the LPS, said his firm's survey highlighted one of the main influences the recession has had on people's property choices.
"These figures indicate the extent to which the property market has swung away from homeownership and towards rented property during the housing slump," he explained.
Written by Andy Britten
Published 12th June, 2009
© 2009 Estates IT Limited
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It has been suggested that many people who planned to buy property last year changed their minds and turned to the private rented sector instead.