Buy-to-let market removing UK properties from the market

Demand for the best mortgage rates is remaining high but many houses have been taken off the market by the buy-to-let industry, according to Firstrung.

Paul Holmes, chief executive officer of Firstrung, said that house prices are likely to fall quite dramatically in the future.

He said: "I think the demand, particularly for first-time buyers to own their first home is still there but [there is] the thorny issue of availability and mortgage affordability."

His comments follow the publication of figures by the Royal Institution of Chartered Surveyors Rics which showed that the number of owner occupied homes have fallen across the UK.

Mr Holmes believes that the buy-to-let landlords have bought a large proportion of the property market that would usual be occupied by home owner occupiers, who now have no option but to rent.

In other news, the market for properties worth over £1 million has seen a "sudden surge" in activity, according to Fine & Country Homes.
 

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2011-01-14 13:15:00 © Moneyextra.com