Insurance News Archive

Renting from buy to let insurance holders 'inevitable for many'

Posted by Jonathan Walker

Renting from buy to let insurance policyholders is becoming an inevitability for many people as the number of new builds continues to fall, according to an expert.

Alan Ward, chairman of the Residential Landlords Association, said that the recession has led to increasing numbers of people renting rather than buying property, as there are fewer houses up for sale.

"New build is also down dramatically with only 60,000 built last year - so people who have no need to move are renting," he commented.

The availability of mortgages and the level of deposits required to buy property - not less than 20 per cent - is also preventing first-time buyers from stepping onto the ladder, he explained.

They are therefore choosing to rent from buy to let insurance policyholders instead, Mr Ward added.

His comments follow figures from the Communities and Local Government department, which showed that the number of rentals has increased by around one million since 2001, while home ownership has decreased slightly.

25 Feb 2010