High costs prompt renting increase

An increasing number of people are choosing to rent their properties due to high costs, according to the UK Housing Review.

Results of the study suggest that average costs to income for first-time buyers are now higher than they were at the peak of that last housing boom in the 1990s.

Published by the Chartered Institute of Housing and the Building Societies Association attributes the growth in private rented sector to its competitiveness, which may reduce the need for consumers to draw up a debt management plan.

Author of the review Steve Wilcox comments: “Private renting has become far more competitive as an option for households compared to the cost of buying; the sector has grown by 21 per cent in the last five years across the UK and is fulfilling a significant role in the housing market.”

Those with an eye to gaining a place on the housing ladder in future, however, might like to think about ways to become debt free in order to become an attractive proposition for lenders.

Meanwhile, a report by Paragon recently suggested that the cost of renting property increased by as much as 19 per cent over the course of 2007.