Disparity between wages and house prices 'will continue'
Buyers will continue to find it difficult to get their first home.
Thursday, 01, Jul 2010 04:20
There will continue to be a disparity between rising house prices and the average wage, it has been claimed.
According to James Davis, chief executive officer of Upad.co.uk, it is getting more and more unaffordable to get onto the property ladder, as potential home buyers need large deposits.
In addition, many of the young first-time buyers out there have already graduated from university with debt of around £20,000, reducing their income further still.
"If you put all those bits together, renting is an increasingly preferred form of tenure rather than going into the housing market," Mr Davis explained.
All this means that there is now less of a taboo surrounding renting than there has been which, combined with a lack of adequate rental stock, means good news for buy-to-let investors, he concluded.
Nearly two-thirds of people living in privately rented accommodation believe they are unlikely to buy their own home in the next five years, according to mortgage lender Kensington.