Investment Property News - Bueno Investments Limited

Property investors will be buoyed by a new study which shows more people are looking to rent because the cost of a first mortgage has reached a record
high.

The average first-time buyer paid over almost 35% of their income on a
mortgage in the period July to September 2007.

This beats the previous record of 34% seen in 1990, according to the UK
Housing Review 2007/2008.

But this is in stark contrast to the cost of renting a home, which has only
risen in line with earnings, the study by the Chartered Institute of Housing
and the Building Societies Association said.

It means it is now "substantially" cheaper to rent than to buy a home, with
rents around 64% of mortgage costs on comparable properties.

Study author Steve Wilcox, professor of housing policy at the University of
York, said: "Private renting has become far more competitive as an option
for households compared to the cost of buying.

"The sector has grown by 21% in the last five years across the UK and is
fulfilling a significant role in the housing market.

"With the rates of population and household growth outstripping current and
planned new house building, we are likely to see continuing growth of the
private rented sector."

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

http://www.cih.org/ (Chartered Institute of Housing)