2022-11-25 08:56:03

Red-hot rental market intensifies as buyers hit the pause button

Logo Daily Mail
Daily Mail
By Myra Butterworth

Demand for rental homes is on the increase as prospective buyers hit the pause button to see what happens with mortgage rates in the New Year, new data suggests.

The number of people enquiring about a rental move is up by 23 per cent on a year ago, according to Rightmove.

This comes as mortgage rates rocketed after Kwasi Kwarteng's ill-fated mini-Budget, with average two and five-year fixed rates soaring above 6.5 per cent - adding hundreds of pounds to monthly payments for homebuyers.

Rightmove's data suggests this has led some aspiring buyers to look at the rental market as a short-term alternative while they wait to see where mortgage rates go.

Average five-year fixed mortgage rates have since slipped back to stand at 5.95 per cent, according to Moneyfacts, but this compares to a level of 2.64 per cent at the start of the year.

The total number of people looking to move in the sales or rental market combined is only 1 per cent below last year's levels, Rightmove said.

The property website went on to claim that there are signs mortgage rates and availability are beginning to settle following a turbulent two months, with indications they could drop further next year.

Continue read on dailymail.co.uk

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