According to claims made by the National Housing Federation, the lack of affordable housing in the UK is reaching crisis point, which is good news for landlords, but not so good for buyers hoping to gain a foothold on the housing ladder.
With mortgage lending levels at an all-time historic low and many people’s budgets squeezed so tight they can barely afford to eat let alone meet the monthly mortgage repayments, it is hardly surprising that more and more people are being forced into the rental market as a means of putting a roof over their head.
Naturally I am not complaining—business has never been so good—but this trend is leading to a rise in unscrupulous landlords who are not averse to charging a small fortune in rent for sub-standard properties. Indeed, some experts believe that rents in the private sector could rise by as much as 20 percent in the next five years, so now is a great time to consider expanding your property portfolio if you have the financial resources.
But with finances for the average family so tight in the current economic conditions, you would be advised to think about the provision of affordable rental properties as opposed to large executive lets. More and more families are being forced into rented accommodation because they cannot afford the cost of a deposit on a mortgage. This trend is unlikely to change any time soon and with social housing waiting lists longer than ever, their chances of securing a council property are extremely remote.
