UK rental sector 'is expanding'
15th Aug 2012
The UK rental sector is continuing to grow, and this shows no sign of slowing down as household growth continues to outstrip provision of property, one sector body has observed.
Bernard Clarke, communications manager at the Council of Mortgage Lenders, noted that there is an excess of demand over supply and so it is difficult for people to become permanent occupiers.
As such, the rental sector's prospects for growth appear to be strong for the foreseeable future, and it is therefore unsurprising that forecasts indicate an increase in buy to let lending.
"The rental sector is clearly expanding, which implies there is an increased choice for tenants," Mr Clarke explained.
"I think it is making a positive contribution to the private rented sector, helping to provide a wider choice for tenants and over a period of time it has contributed to improved standards in the private rented sector."
Market conditions would encourage lending, and so the next ideal step would be an improvement in the availability of funding, the expert added.
This would enable lenders to respond potentially to increased demand from the buy to let investors – something that the Funding For Lending Initiative, which was only launched at the start of this month, may help to deliver over time, Mr Clarke concluded.
Posted by Staff Writer: Frances McDonald
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