Home loans in the UK are still out of reach for many first-time buyers, according to a sector commentator, who said that this is one of the many factors driving rental demand in the country.
Tom Entwhistle, director of LandlordZONE.co.uk, stressed that a drop in supply in the industry sector and the current uncertainty in the UK job market are creating a "hardening rentals market".
He made these comments after a research conducted by the Royal Institution of Chartered Surveyors indicated that low levels of supply are forcing rental price increases.
In his opinion, it is not surprising that demand for rental properties in the country is high, and added that rents should hold in a steady level in the near future if not rise further.
"We are in an uncertain period with worries about the economy once again, brought on by the euro crisis, plus a whole host of new measures to be introduced by the new government," explained Mr. Entwhistle.
Mr. Entwhistle also said that many "reluctant landlords" may be re-entering the market due to the current economic conditions.