First Time Buyers having to rent Friday, 29th January 2010

The lack of mortgage finance that is available to first-time buyers is forcing the group into the rental market, it has been revealed.

New statistics from the Association of Residential Letting Agents (Arla) reveal that there has been a rise in the number of reluctant tenants, with 54 per cent of landlords stating that many consumers were being forced to rent, rather than buy, a property.

James Davis, chief executive of upad.co.uk, says that renting could in fact be the "smart choice" for people who need to react to an increasingly adaptable working lifestyle.

"It gives you that flexibility to upgrade when you want and not being burdened with boiler and roof repairs and it makes sense for an easier living," he adds.

Mr Davis believes that the lack of mortgage finance is the primary reason why first-time buyers are struggling to get on to the property ladder, coupled with the fact that job insecurities are preventing would-be homeowners from taking on the commitment of a mortgage.

During the fourth quarter of 2009, some 41 per cent of members surveyed by Arla stated that there were more tenants than properties in the rental market.

© Houseladder Ltd