13 Dec

Fall in owner-occupier rate shows popularity of buy to let homes

Fall in owner-occupier rate shows popularity of buy to let homes

The drop in the owner-occupier rate has shown the increase in popularity of people in the UK choosing to rent buy to let properties.

According to the Royal Institution of Chartered Surveyors (Rics), there has been a decline in the number of people in Britain who own the home they live in from 71 per cent in 2003 to 68 per cent in 2010.

Himanshu Wani, economist at Rics, suggested that this fall of three percentage points from the property market peak seven years ago is likely to boost the demand for buy to let homes.

"With first-time buyers struggling to take an initial tentative step on housing ladder partly because of lenders' demands for larger deposits, more potential purchasers are likely to choose the rental option," he stated.

The housing expert added that tenant demand is set to continue to rise, as people delay buying properties for sale in the UK until they are "in a stronger financial position".

Earlier this month, Rics' Residential Lettings Survey revealed that 33 per cent more surveyors had seen a rise in demand for buy to let properties rather than a fall over the three months leading to the end of October 2010.ADNFCR-1222-ID-800288171-ADNFCR

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