Renting makes sense for many

Published: May 09, 2008

It makes sense for potential homebuyers in London to rent before purchasing a property.

That is according to Property Finder, which said that huge price growth in recent years has made much of the capital unaffordable.

As a result, more people are turning to rented accommodation, spelling good news for those with buy-to-let mortgages.

"Central London has seen such amazing growth over the last decade, since 1992 even, but I think that renting is not a bad option for people who want to live there and give themselves a bit of time [before buying a house] in the process," commented Nicholas Leeming, director of Property Finder.

He also revealed that rents are high in London, which is yet more good news for people with buy-to-let mortgages.

"I think inevitably that high rental prices are the only thing you will find in central London because there is a very limited supply and a very strong demand [for rental property]," continued Mr Leeming.