Getting on property ladder 'difficult'

There are still likely to be many people looking to rent out homes once the housing market fully recovers, as it is still difficult to get onto the property ladder.

The Council of Mortgage Lenders (CML) has indicated that decreasing house prices will not necessarily result in a surge in homes being bought.

Bernard Clarke, a spokesman for the group, suggested that issues such as securing mortgage deals could ensure people want to carry on being tenants.

He said: "The simple truth is that lower prices will encourage buyers but they will be constrained by things."

Fears over a prolonged recession and the threat of unemployment will also keep people from taking the plunge into the property sector.

However, this could also leave opportunities for landlords to find great deals on houses to extend their own portfolios.

A 26 per cent rise in gross mortgage lending took place in the UK between June and July, according to CML figures.

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