First Time Buyers Forced to Turn to Rented Property

The global financial downturn has resulted in many first time property buyers facing a "property mountain", iammoving.com and utilitell.com have argued.

Jon Brown, partner relationship manager of the websites, said first time buyers are currently "unable to even negotiate the foothills" because banks are increasingly making their UK mortgage lending criteria more stringent.

The good news for off shore landlords with property in London and other parts of the UK is that more individuals will be turning to rented accommodation.

"The reality of this situation is that for the next year, and perhaps the foreseeable future, aspiring first-time buyers and home-movers will have to set up base camp and weather the storm in a rented property," Mr Brown commented.

If the government is to help the London property market become more accessible, it could provide incentives for banks to lend or set aside more funding for affordable housing in London and other desirable locations, he added.

His comments follow a report from the BBC which found banks and building societies do not expect a significant recovery in mortgage lending next year.

First Time Property Buyers News