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Buyers put off entering housing market
News Article Published:
Friday, 19 October 2007 Category:
Housing
|
Money
Potential homebuyers, such as those who have secured a graduate job, are being put off buying their own home and are choosing to rent, according to a new survey.
A study, conducted by Paragon, has found that the current economic environment is causing many to defer decision making around the issue and resulting in a surge in demand for rented properties.
"Those people who would have been looking to purchase their first home in the current environment have the option of affordable and good quality rented accommodation instead," said Paragon chief executive Nigel Terrington.
"In an environment of stable yields, landlords expand their portfolios in response to identified tenant demand. More people choose to rent in an environment where they are unsure about the housing market, and on top of that demand from the migrant and student markets continues to grow."
Total return averages for landlords currently stand at 14.2 per cent, up from 12.9 per cent in March this year, according to the report.