16 Feb

Buyers 'returning to rental sector'

Buyers 'returning to rental sector'

An increasing number of first-time buyers are turning to the rental sector after failing in an attempt to get a mortgage, it has been stated.

In news that may interest landlords looking to invest in the buy-to-let sector, the Intermediary Mortgages Lenders Association (IMLA) revealed that 58 per cent of first-time buyers trying to get a home loan through their broker were unable to do so.

Executive director of IMLA Peter Williams stated that such buyers have been hit "extremely hard" by higher loan to values, adding: "For youngsters without a substantial deposit, the only alternative is renting. The private rented sector is going to have to pick up the slack."

For this reason, it is important the government devotes more of its banking bail-out resources to helping financial institutions that support the buy-to-let sector, he commented.

Last week a spokesperson for affordable housing lobby group PricedOut.org.uk said the government should "learn lessons from the ill-fated housing boom of the last ten years", suggesting that measures should be taken in future to avoid a "bubble" in prices.
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