It will come as no surprise that those who previously had plans to buy their first home have been doing a lot of rethinking over the past few months. Faced with the continuing impact of the credit crunch and the falling house prices, more and more tenants are deciding to extend their existing tenancy agreements.
Seems quite a sensible choice given that even more people are now having difficulty in finding funds to make down-payments that many mortgage lenders are now asking for.
This is not only happening in the UK, but is the trend in the rest of Europe and America as well. Tenants are calculating that by extending their existing agreements they will be able to save money while waiting for the health of the economy to improve, and more affordable mortgage products come on the market.
It is the first-time buyers who are choosing to opt-out of buying properties and going for tenancy extensions. Many are still struggling with student loans and cannot raise the down payments that are now demanded by the mortgage lenders.
The economic downturn has changed the attitude of first-time buyers but it is clear that they are not prepared to be burdened with high interest rate mortgages and high property prices. Instead, they are prepared to extend their tenancy agreements and wait until the markets, and banks, sort themselves out.
Did you know?
Our landlord software has the ability to extend your tenancy agreements at the touch of button. It is simple, fast and will save you time when managing your tenants.
