Rental market 'will see long-term growth'
First-time buyers who are forced to spend longer in the rental
market due to mortgage constraints and deposit requirements will
drive growth in the rental sector, according to one expert.
Lucian Cook, director of residential research at Savills, predicted
that the property industry would see "quite strong rental growth"
over the long term.
Citing first-time buyers who do not have the funds available to get
on the first rung of the property ladder as a major factor, Mr Cook
said: "They [will] spend longer in the rental market which, over a
period of time, will increase the level of demand in that rental
market and should drive some rental growth."
Last month, FindaProperty.com reported a 10.2 per cent fall in the
stock of rental properties in October.
Mr Cook attributed the substantial drop to the high levels in
rental stocks as people have struggled to sell their homes and
turned to renting as an alternative.
He added that the significant increase in supply in the rentals
market earlier in the year had caused the fall last month as the
property market began to recover.