December 2011 News

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Homebuyers turn to rented accommodation

6th December 2011

Frustrated would-be homebuyers struggling to get finance for a mortgage have turned to rented accommodation instead.

Demand in the midlands lettings market outstripped rental property supply in the three months to July, new figures from the Royal Institution of Chartered Surveyors showed.

The strong demand was driven by potential first-time buyers who had shelved plans to purchase a home after failing to meet lenders’ requirements for a deposit. The imbalance between supply and demand pushed up rents and generated better yields for landlords.

Nick Humphrey, Managing director at Nicholas Humphreys, said: “The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the county.

“Moreover, with mortgage finance for first-time buyers likely to remain in short supply for some time to come, this imbalance is set to persist.

“The inevitable outcome is that rents will continue to increase.”