Renting 'makes financial sense'

Thursday, February 25th 2010

People struggling to save money and purchase a home could find that renting is a more affordable option.

It seems that, for many people, this is exactly the case because the number of Brits renting private property has soared.

Chairman of the Residential Landlords Association Alan Ward said that this trend is expected to continue "for the foreseeable future".

With mortgages offering less competitive rates during the recession, it was "inevitable" that renting would become the only option for some, Mr Ward explained.

"First time buyers remain renting for longer" because it can often "make financial sense", he continued.

Mr Ward's comments follow a report from Communities and Local Government, which found an increase of one million renters from 2001.

Some 59 per cent of this group did say they planned to eventually buy a home.

It was discovered that 3.1 million people now choose to become tenants rather than owners in the UK.