Debt advice: Housing market remains 'unattainable'

29/01/2010

Without renting as an option, people with debt or money problems would be in "desperate straits", a rental scheme has suggested.

As economic difficulties continue to affect people in the UK, getting on to the property ladder is proving "very arduous", a spokesman for the National Approved Letting scheme has said.

He added that the rising cost of housing meant that owning property was simply not an option for many people.

"Without the private rental sector, without buy-to-let investments, and without private sector leasing schemes [from] local authorities, there would be a very, very serious housing problem," he said."

There was a rise in the number of people buying property at the end of 2009; however this has been classed as a blip in a generally flat market due to a rush of people wanting to purchase a house before stamp duty was reintroduced.

A recent report from Halifax found that homes are now less affordable than in the 1960s.

Average homes have quadrupled in value from 1959 when a typical home would have cost about £43,000 in today's money.

Kevin Still, director of EuroDebt, commented: "Being a tenant gives you more flexibility if you are struggling financially. Being 'king of your own castle' may no longer be sensible if you need to clear debt and establish a solid financial base to re-build from.

"Our debt solutions are a long-term commitment, but allow you to regain control of your finances. This is not really about first time buyers, it is about a major re-adjustment by consumers who have been reliant on inflated house prices to borrow more than they could afford."

Tags; Housing Debt and Bills,

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