High mortgage rates push UK first-time buyers towards rental market – Rightmove

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High mortgage rates push UK first-time buyers towards rental market – Rightmove
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Demand for rental homes in Britain rose in October as prospective first-time buyers put off purchases amid the surge in mortgage rates, property website Rightmove said on Friday.

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Apartment buildings are backdropped by skyscrapers of banks at Canary Wharf in London, Britain October 30, 2015. Picture taken October 30, 2015. REUTERS/Reinhard Krause

UK mortgage rates have risen above 6% in recent months, gathering speed after former prime minister Liz Truss’s Sept. 23 “mini-budget” roiled financial markets. First-time buyers have been the hardest hit by the surge, forcing them to consider renting in the short-term while they wait to see where mortgage rates settle, Britain’s biggest property portal said.

"Now that there are signs that mortgage rates are settling down, the indicators are that they will stabilise at a higher level than previous buyers had been used to."

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