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Cheaper to buy than rent in 2009, says estate agent
Thursday, 11 December 2008
Life after graduation
Graduates considering their future housing options may be interested in the comments of SW19 founder Luke Bennett, who claims it may be "cheaper" to purchase property than rent in 2009.
He predicts that mortgage finance - which has been difficult to come by for some time as a result of the credit crunch - will become increasingly available for first-time buyers from the second quarter of next year.
"The rental market is going to take a little bit of a slowdown because the mortgage companies are being forced to pass on these interest rate cuts," he suggests.
With falling property prices and more appealing borrowing conditions, Mr Bennett suggest that young people may wish to invest in home rather than, as he suggests, help pay somebody else's mortgage by renting.
The Bank of England's monetary policy committee reduced interest rates for the third successive month on December 4th, lowering its base rate from three per cent to a historic low of two per cent.
Homeowners with mortgages which track the Bank's interest rates are widely recognised to have benefitted from the development.