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Property rental demand 'to remain strong'

25 February 2010

Demand for rented property is set to continue in its steady rise while the effects of the recession delay first-time buyers, one housing expert has suggested.

The proportion of all households occupied by the owner has dropped to 67.9 per cent, according to figures published by the Communities and Local Government.

And Alan Ward, chairman of the Residential Landlords Association, indicated that the availability of mortgages and the high level of deposits may be deterring first-time buyers.

He said: "Fewer houses are being offered 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."

It was calculated that the number of families with children - private renters - almost equalled the number of social renters, while the proportion of student renters declined since less people were applying to university.

This reluctant rise in tenant demand is feared by the Association of Rented Letting Agents to cause a lack of supply in the rental housing market.

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