I read in the news today that the rental market is largely unaffected by the recent turbulence in property sales market. This is no surprise considering the higher deposits required and the stricter lending criteria set by many mortgage lenders.

So with demand out stripping supply what does this mean? Well, it means an inevitable rise in rent if the demand continues at its current rate. As a result this means many people saving to buy will find it more difficult to save for a deposit, which will have a knock on effect on the sales market.

Also in the news today, it seems the credit crunch is seriously affecting the construction industry with many firms laying off workers making their properties weather proof and leaving them until the market improves. It also stated in the news that in the North up to 50% less homes will be made next year and 30% less in the South.

There are literally thousands of people being laid off with many of the large construction firms such as Bellway and Redrow laying off hundreds of staff each.

As a consequence construction companies are having to return to a more traditional method of building. They generally construct a couple of properties and build more once they’re sold. This solidifies the notion that this downturn is not going to change anytime soon.

Related posts:

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4. Latest UK Property News
5. News 19th June 2008