LETTINGS NEWS: Increasing numbers of young people will rent in future
More evidence has emerged to show the buy to let sector in the south west and across the country is likely to thrive in the long-term.
The Council for Mortgage Lenders calculates that a first time buyer now requires an income of £38,977 to pay for a mortgage and traditional household expenses.
However, the average salary for a single young person in a professional position is only £27,645 (and slightly less in areas like the south west). This suggests that only better-off young people, or those who club together with friends, can actually afford to purchase.
The organisation that made this analysis, mortgage insurance firm Genworth, says this inevitably means increasing numbers of younger people will be renting in the long-term.