Will a rise in UK rents spoil the first time buyer market?

Over the last few weeks it has become more and more apparent that the UK property sector is benefiting somewhat from an increase in those looking to rent rather than those looking to buy. The Royal Institute of Chartered Surveyors has confirmed this trend which could actually see UK property prices pushed higher and more and more people effectively blocked from entering the market as first-time buyers.

This is most definitely the downside of a recovery in the UK rental market which is seeing more and more people trying to save deposits for property purchases in the future. However, unless those looking to buy are able to increase their deposits in line with property price increases, as rental demand continues to grow, they will find it very difficult to gain entry to the market. When you also take into account the fact that mortgage lenders are still reluctant to make too much liquidity available for first-time buyers, the situation is very difficult.

Even though the last two or three years has been difficult to say the least for UK buy to let landlords it would seem that confidence is slowly but surely returning to this area of the market. It is becoming something of a self-fulfilling prophecy with increased rental demand pushing property prices higher and increasing the number of people looking, or forced, to rent.