According to the latest Alliance & Leicester quarterly index, more than six million people in the UK would rather rent property than buy. It also found that of the six million who would rather rent, almost half were nervous of getting onto the housing ladder because they feared the actual cost of a mortgage.
Almost one in five thought that a mortgage was too much of a commitment, while a third said that it was too expensive and felt that they would not be able to afford their own property.
Alliance & Leicester believe that the mortgage market is becoming more competitive and are advising potential buyers to take advantage of the competition between lenders to get the best products and rates.
Our view
People with their heads screwed on may be sensible to wait and not buy. Renting means you can walk away from problems whereas owning does not.
Will property rise or fall anyway?