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Lack of mortgages 'boosts rental demand'

20 November 2008

Consumers are turning to the private-rented sector as it becomes increasingly difficult to secure a mortgage, it has been observed.

According to the National Landlords Association (NLA), demand for such property continues to be high because finance is restricted.

It comes following a study by the Royal Institution of Chartered Surveyors, which revealed that house price falls in the three months to October had combined with a tightening of mortgage lending conditions to contribute to a rise in renting.

Many would-be sellers were found to have opted to fill the gap in the rental market rather than attempt to sell at a low price.

And NLA spokesman Steven Hilton noted that this had also led to a significant number of "accidental landlords".

"This can lead to problems as inexperienced landlords, who take a short-term view to letting their properties, could find themselves out of their depth," he said, advising anyone who chooses to rent out their property rather than buy a new home to be aware of regulations.

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