Learn Why Strict Mortgage Restrictions Are Forcing More People to Rent

The Bank of England has just released its findings from a study of lending throughout May. Within the report it was stated that while there were 67,000 mortgage applications filed for home purchases throughout the month (a rise of over 45% since December), 15,800 of these applications were rejected. While this 23.55 rejection rate, which marks a rise from the low that the market hit in January, is a signal that the property market may well be passed the worst of the crisis, it still has a long way to go before it is fully recovered.



The increased stringency of the rules that have been enforced by mortgage lenders over the last few months has meant a lot of potential owners are being forced to take a step back while the market stabilises or until they can afford the higher deposits that are required. These people are looking towards rental properties to live in while this takes place. Due to this there is an increased demand for properties on the rental market and potential tenants have to act quickly to secure locations.



As house prices are at the lowest they have been in years home owners are reluctant to sell and are instead trying to rent their property out instead. This has resulted in a large number of new landlords flooding onto the market whose inexperience could potentially result in difficulties should any problems arise. This presents potential tenants with a minefield to navigate during their search and one of the best ways to make that search as easy as possible is to approach an established agency. I was struggling to find houses to rent in Birmingham but had more success with an agency when looking for flats Dundee.



Overall, the high levels of mortgage rejections are forcing larger numbers of people towards the rental market. Finding rental property can be a difficult task but with some care, or the help of an agency, it should be possible to find the perfect place.