A recent report from Zoopla recently reported that in many cities in the UK it was cheaper to buy/own a home than it is to rent.  The higher demand for rental properties in the UK has pushed rental fees to levels that make renting a budget buster for many households.  According to the Association of Residential Lettings Agents (ARLA) there is going to be a continuation of the trend in 2013 as demand grows even more.  The lack of purchase ability is causing many households that would have otherwise chosen to buy a property to instead seek a rental.

Ian Potter, managing director of ARLA, said, “The private rented sector will likely play an even more crucial role in the housing market in 2013 as renting becomes a default choice for many people who simply cannot afford to own a home or are too cautious to take out mortgage finance.”

The Bank of England’s Monetary Policy Committee (MPC) left the standard base interest rate at the current 0.5% for another month in December.  Forecasts are calling for the rate to remain unchanged through 2013.  While a low base rate can often mean little when compared to offerings from lenders there are currently very attractive deals for mortgages and remortgages.  If hopeful buyers and homeowners looking to remortgage have not visited the consideration for a loan then they should do so and check out the current offers.  Lenders are still very competitive for business and have reached out to get those that want to borrow but may have had difficulty coming up with deposits or appropriate equity levels in the past.  Many have lowered their loan to value requirements on remortgages and mortgages.