-
Only if 100% mortgages come back. Renters need a deposit, which becomes harder when rents become higher. Also stamp duty relief for first time buyers is reducing earlier too.
There are some lenders doing 100% rental history backed mortgages, and lending up to 6x income in some cases, but outside of criteria for many renters at present.
Acliff-
But someone has to be buying the properties for the supply to decrease.
-
Only if 100% mortgages come back. Renters need a deposit, which becomes harder when rents become higher.
We should hopefully see reduced purchase prices over time from a lower level of demand from landlords. Many renters are actually in a position to buy, and the number of first-time buyers has increased in the last year or two, so a switch of tenure does seem feasible if the conditions are right.
The limiting side of this is that when people do buy their first home, they tend to buy places with more rooms (e.g. rather than sharing with others), so marginally reducing the number of bedrooms available to rent. In any reasonable world that should be easily solved by building more dwellings, and shouldn't be any reason to allow landlords to continue pushing up values.
aggi
slippers
Isn't there a finite number of people though. Renters become homeowners in this scenario.