Recession forces first-time buyers to scrap property purchase plans

Posted 10/06/2009

About half a million first-time buyers in the UK have abandoned plans to make a property purchase in the last year.

This is the result of a study by the Letting Protection Service, which blamed the situation on the economic downturn.

Kevin Firth, director of the organisation, said the recession has led to a growing number of people choosing to live in rented accommodation instead of buying a house.

This, he stated, is leading to more pressure on private landlords, particularly those who are relatively inexperienced and unaware of certain legal obligations.

“I would strongly encourage all of them to take professional advice on legislation and carry out full referencing on their tenants,” Mr Firth commented.

However, he added that the full of effect of declining property purchases on the housing market would not be apparent for several months.

This comes after Stuart Law of Assetz suggested that increased regulation across the buy-to-let sector would lead to private landlords raising their standards and ensuring they comply with all the relevant laws.