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Rising rental prices pushing people toward buying

Journalist: Jake Carter, Mortgage Introducer

ended 02. May 2023

Rising rental prices are forcing people onto the property ladder, according to Winkworth Estate Agents. 

How many of your clients are coming from the rental market?

Do people see buying as a more affordable option than renting?

What advice would you give to your clients on when to rent and when to buy? Do you have any clear guidance that you offer on this?

Is this a good or bad thing for the housing market as a whole?

2 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Higher rents are a result of a year of rate increases by the central bank, in their floored attempt to curb inflation. Renters are not looking at buying property as a cheaper option, but they are frustrated by landlords passing the increased mortgage costs onto them. When mortgage costs come down, in the second half of the year, renters may then think about entering into the housing market as rent won't come down at the same time. Until then, they are caught between a rock and a hard place.
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Graham Cox
Director at Bridging Hub
Many of our clients are self-employed first-time buyers. Many are completely fed up with paying through the nose to rent, what is often a poorly maintained property. We've also had a few cases recently of clients looking to buy from their landlords, often at discounted prices.

Paying for a mortgage is still seen as a cheaper option, and by and large, it still is, even with higher mortgage rates. Landlords have been raising rents in response to their own mortgages going up, so it's a vicious circle.