How Is The Rental Market Faring After The Credit Crunch?
Posted on December 24, 2009 - Filed Under Finance & Investment | Leave a Comment
There is no doubt that we have seen a lot of changes in the economy and in life in general over the last year or two. The housing market in particular has suffered a great deal, with fewer mortgages being granted and fewer people in a position to buy anything.
But how are things progressing in the rental market? Has this been struggling in a similar way?
In actual fact you might be surprised at the answer. It seems the rental market has been heading in the opposite direction " and that is very positive news indeed.
If you are thinking about renting a property there has rarely been a better time to do it. When a seller cannot successfully sell their home they tend to do the next best thing if they have somewhere else to live already, by renting it out instead. That means there are more rental properties for tenants to choose from than there were before the credit crunch took place.
And just as those trying to sell their homes are reducing the prices to make a sale possible, so those who are renting them will be doing the same. This creates a promising market for those who are looking to rent a property, so it is worth shopping around to find the best deal.
There are also more tenants in the market due to the credit crunch. Since the banks are reluctant to lend any money to anyone, many people who would previously have been able to get a mortgage have been refused by lenders.
Given the lack of other options in many cases, these people are now looking to rent until such time as they can think about buying again. At least this means there are more possibilities for those who have the money to rent a property with.
The benefit of renting is obvious. Although you have to find a deposit, it normally amounts to a months rent plus a month of the actual rent in advance. This is far less than you would be expected to find to put money down to buy a house. And of course you dont have to convince a bank to lend you thousands of pounds for a mortgage either.
The housing market is beginning to improve to some extent, but it has a long way to go before it bounces back to the heights it was at previously. As such if you are looking for flats to rent in Glasgow or anywhere else for that matter, you can expect to find plenty of possibilities; there is very likely to be more choice in the rental market for some time to come, thanks to the effects of the credit crunch.
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