House purchase "not an option" for would-be first time buyers

29-Jun-2007

Buying a house is simply not an option for many first time buyers, a mortgage lender has commented, with the private rented sector experiencing strong growth as a result.

Mortgage lender Paragon has said that rents rose for the sixth month in a row, with the average annual rent reaching £10,702 in England and Wales for May.

Migrants and those working in their first jobs are among those who cannot afford to get onto the housing ladder, the lender advised.

"Commentators forecasting a downturn in the buy-to-let market have overlooked the fundamental dynamic of the UK housing market - people need somewhere to live, and for many house purchase is simply not an option," commented Paragon chief executive Nigel Terrington.

"Pundits may indulge in scare stories about buy-to-let, but that won’t change the fact that many millions of people rely on the private rented sector for a roof over their heads. Like it or not, buy-to-let is here to stay and has a rosy future," Mr Terrington added.

Earlier this week it was suggested that tax relief on buy-to-let investors be scrapped in order to help improve first time buyers' chances of purchasing their first home.

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