Article: More seek to rent as mortgage costs rise

Increasing numbers of people are opting to rent as the cost of a mortgage for first-time buyers reaches a record high, a report said.

The average first-time buyer had to spend nearly 35 per cent of their income on a mortgage during the third quarter of 2007, overtaking the previous high of 34 per cent reached in 1990, according to the UK Housing Review 2007/2008.

But the sharp jump in house prices and mortgage costs during the past decade contrasts with increases in the cost of renting a home, which has only risen in line with earnings.

The review, published by the Chartered Institute of Housing and the Building Societies Association, said this had led to it being "substantially" cheaper to ...

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