Professional landlords and buy to let investors will profit from increased property prices this year, with six out of every ten renters unable to afford to buy.
According to a new survey from Rightmove, more than 60 per cent of those expecting to rent for at least the next year would like to purchase their own property, but have been priced out of the market. The number of individuals in this situation has risen for three consecutive quarters.
The survey also says that just 13 per cent are renting out of choice. The remainder see it as a necessity.
Despite the collapse in property prices, many prospective buyers are now unable to raise the increased deposits required by mortgage lenders. Others cannot secure a loan at all. The situation looks set to get worse as property prices begin to recover.
But, while this is bad news for prospective buyers, it provides an attractive opportunity for landlords. More than 50 per cent of those who expect to rent this year expect to be doing so for up to three years, and over 30 per cent expect that they will not be able to buy for more than three years.
