Although, UK house prices are falling, there is a concern that rented accommodation could experience a shortage.

The number of buy to let mortgages on offer has fallen significantly (40% fall), therefore, there is likely to be a fall in the number of available houses for rent.

Secondly, many first time buyers are seeking to rent rather than buy. There are many young people who had hoped to buy but have been dissuaded by a rise in mortgage costs and an increase in the deposit required. However, the increased demand for rented accommodation may be too great for a housing market which is suffering a general shortage of supply.

This is ironic since there is an increase in the number of unsold houses.

Home builder Hovis, has announced plans to halt building of new houses given the downturn in prices.