There could be more private sector rentals available in the coming months, an expert has said.
The government's decision to reduce the budget available for social housing in the UK may adversely affect the prospects of people seeking a mortgage deal in the coming months.
According to Nigel Terrington, chief executive of the Paragon Group of Companies - a buy-to-let home credit specialist - anyone scouring the market for a product such as a tracker mortgage may instead now opt to rent a house rather than buy one.
Mr Terrington said that the trend in housing tenures over the last decade has been towards the private rented sector instead of social homes and the measures announced by chancellor George Osborne's spending review earlier this week (October 20th) "will inevitably accelerate this shift".
He added that the decision made to move social housing rents more in line with a the market rate could result in private property becoming a genuine option for people who had not previously considered it.
Meanwhile, Paragon stated recently that landlords are confident that the UK's buy-to-let sector will grow in the near future.
(source: http://www.which4u.co.uk/mortgages/news/12221-mortgage-seekers-could-be-better-off-renting)
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