Properties Let

Reasons For The Increase In Properties Let In The UK

The number of properties let each week across the UK continues to increase, with many people still choosing or needing to rent rather than buy their home.

This situation has been escalated by the dearth of good mortgage terms in an economy where economic growth has been stifled due to the credit crunch which despite some economic analysts predicting that the mortgage and home buying market will pick up, house sales are still slow and prices have not fallen enough to encourage first time buyers to step up the property ladder.

Letting agents are finding that there are more tenants registering to rent a home and reports have concluded that in some areas there are not enough properties available to let. This has also fuelled an increase in rents as well as a remarkable increase in estate agents and property websites.

With the latter, one finds that most of them are merely opportunists who having heard about someone else's idea or economic forecast simply negotiate a deal to acquire data from the bigger players and hope to make a profit some day.

There is a great deal of uncertainty about Bank of England base rate rises within the media and amongst the general public and it would seem that the majority of people are doubtful that now is a good time to buy a new home. Most first time buyers seem to still be reluctant or unable to arrange a mortgage.

Mortgage lenders are doing their best to introduce affordable products and introductory offers for new customers but the need to provide a substantial deposit continues to be a problem for most people who desire to buy a property.

Fears amongst public sector workers about their job security and future financial situation are running high and most people will not be considering taking on a new home loan in the foreseeable future.

It is unlikely that 100% mortgages will be available within the next few years as everyone continues to assess and come to terms with the mistakes that were made in during the 1990's and early 2000's. The very mistakes of over lending to unsafe property investments, over building and over estimation of property values by mortgage lenders and buyers alike.

Most mortgage lenders are requesting at least a 15% deposit and a solid credit history but even then the products on offer are most times difficult to obtain and charge a higher rate of interest.

The demand for rental property that is affordable, well kept and in the right location is therefore expected to grow. And with the Olympics around the corner, there has been an increase in the number of tenants queuing up in certain cities for rental property mostly due to migrant workers here to build Olympic structures and edifices or just people who plan to spend a few months of their time in the UK during the Olympics next year (These include sports officials from foreign countries who require logistics headquarters for their contingents).

It is hoped that properties let by both private and commercial landlords will continue to fill this market gap and ensure that working people have a choice of houses and flats to rent.

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