Thursday 5th July 2007
Although renting can sometimes be a lifestyle choice, many young people have no choice but to rent due to over-inflated house prices, claims Scottish Widows.
And although some financial services are now offering specialist mortgages for graduates, the latest interest rate hike will not tempt many to take out a mortgage, for fear of being unable to make repayments.
Communications manager for Scottish Widows, Amanda Docherty, said that although letting can be seen as a waste of money, many young people have no other option than to rent.
She said: "I think in today's market, you don't really have a choice; you have to rent for a certain period of time. Unfortunately, that is the thick end of the problem. People are now renting and finding it harder to save for a deposit at the same time as renting."
However, she added: "I think a lot of young people nowadays want to rent anyway because if they want to live in London, in the city, or in Edinburgh in the city for work purposes, they can't afford to buy anyway so they don't really have the option not to rent.
"For many I think it is a lifestyle choice as well, a lot of people are putting off buying until they see what the house market does [and] see if it becomes more accessible for them."
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Property
City analysts today warned the government that the British economy is set to witness a recession which could last up to 18 months. Capital Economics predicts that the gross domestic product for the... 
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