Renting 'best alternative to buying'

Renting property in London is "not a bad option" for people who cannot afford to buy their own home, according to one leading property portal.

Nicholas Leeming, director of PropertyFinder.com, said that the runaway house price growth enjoyed by the British capital over the past decade has left many incapable of become owner occupiers.

House prices have risen by an incredible 227 per cent since 1998, but with the government's focus on expanding new builds rented property in the capital remains in high supply.

"Central London has seen such amazing growth over the last decade, since 1992 even, but I think that renting is not a bad option for people who want to live there and give themselves a bit of time [before buying a house]," Mr Leeming commented.

He added, however, that people looking to rent in the most fashionable parts of central London could expect to pay very high rental prices because of demand outstripping supply.

According to the Halifax house price index, the average value of a UK home fell by 2.5 per cent in March.

News posted on 9th May, 2008