Claims by mortgage lenders that people could save thousands of pounds by buying their own home rather than renting have been slammed as unrealistic by the Residential Landlords' Association.

The RLA - which represents landlords with more than £1.2billion worth of property and more than 30,000 tenancies across the UK - points out that renting is an option which many people choose because of their lifestyle and career.

Chairman Martin Moylan said: "Simply comparing renting and buying costs is an unrealistic portrayal and ignores several important factors.

"Many people choose to rent because it provides a short term accommodation solution to today's lifestyles. People move around more and they change jobs more often - the costs of buying a house soon add up if you don't assume that people are going to stay in the same property for 25 years as the Abbey National has suggested.

"The entry costs to rent are very low. A month's rent as a deposit and month up front works out cheaper if you aren't sure you want to commit to a mortage with the associated deposit, legal fees, stamp duty and furnishing costs.

"Renting provides great value for money in short term. Property prices might be high at the moment but there is still every chance that they can fall and people who have overstretched themselves financially will find themselves in negative equity.

"The Abbey National's research is based on people renting for the 25 year term of a mortgage - it's an unrealistic calculation, very few people rent for that much of their life. Very few people even stay in the same house for that period of time any more.

"Lifestyles have changed for many reasons including availability of work, divorce rates and the fact that more people choose to live together rather than get married. Not everyone wants a mortgage - the average age of first time buyers has risen considerably because young people can't afford it or don't want the commitment.

Figures from the RLA's own website - www.homes2rent.net - show that rental enquiries are on the increase as the housing market hots up.

Over 7,000 people used the site last month to search for rented accommodation throughout the UK - 35% of them searching for two bedroom properties, predominantly in Manchester and London.

Martin Moylan added: "The website is an indicator that increasing numbers of people are looking to rent in property hotspots such as Manchester and London where house prices are at an all-time high."

"Renting gives people a choice. They can really get to know an area before they buy a home and they can make sure that the job which has taken them to a town or city is the right career move for them before they commit to a mortgage.

"Buying a home is daunting prospect for young people who are often still clearing higher education debts. Many prefer to share with friends and enjoy a sociable lifestyle before tying themselves down to a 25 year mortgage."

ENDS April 2002