The global credit crunch affected the availability of mortgages. This has given rise to the so called ‘reluctant property landlords’ in the UK. These are the individuals who, prior to the financial downturn, were considering selling up and moving home. So instead of buying new property they decided to move into rental accommodation. The domino effect was for these people to fund their move by renting out their house or flat. This has caused a surge in demand for properties available for rent.
So why did they decide to move and not just sit it out? There could be a whole host of reasons why. It could be that they needed more space and thus bigger property, relocation due to a new job or even downsizing. Whatever the reason, it caused a surge in UK property available for rent. There is still no clear sign of any consistent movement in the UK housing market. One month there are more properties being made available to buy, this is followed up by a decline in the number of properties for sale.
With the UK General Election just round the corner it’s clear that many are sitting tight to see who gets elected and how it will effect the UK economy as a whole. Based on recent UK economic data it’s apparent that the green shoots of UK recovery are there. However, how sustainable it is remains to be seen.
