First-time buyers forced to stay in rented housing next year?

Tenants referencing services may be particularly important to landlords nowadays, as occupants are generally staying in their contracts for longer and one expert's comments suggest this trend could continue next year.

One of the reasons people are living in leased accommodation instead of entering the property market themselves is that they are unable to access finance to buy real estate.

The National Association of Estate Agents' chief executive Peter Bolton King thinks this situation will stretch into 2012.

"Next year will see a continued lending barrier facing those entering the housing market for the first time, with major lenders sticking to tight mortgage policies," he said.

In fact, he warned the difficulties first-time buyers will face trying to take out a home loan will become even greater in the second quarter of 2012, when the Stamp Duty holiday ends.

The struggle to get a mortgage seems to be affecting tenants far more than landlords, however, as property consultant at Knight Knox International Iqbal Hussain recently stated it is not as hard for buy to let investors to access finance as it has been over the last couple of years.

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Posted by Luella Ravelin