The rental market for properties in England has been strongly influenced by the financial crisis in recent years. This is partly due to the fact that high property prices exclude many first-time buyers from the property market. First-time buyers are younger people who have recently left college or are ready to move out of their parents' or others' homes. In most cases there is not much money available yet, only some savings and in today's market there are fewer and fewer properties for first time buyers. While financing becomes more and more difficult and income prospects are less good, it is especially young people who find it difficult to access property. For them, the rental market is an important alternative, because it does not take away all their savings and it is more affordable. However, this will have an impact on the rental market over the next few years as more and more people tend to rent properties these days, whether young or old. The supply of short-term rental housing in London is inelastic, due to the time it takes to build new houses and apartments. There is an increase in the demand curve, as more people demand housing, as shown in diagram 1, the demand curve shifts to the right, so rents will increase from P1 to P2. On the other hand, in the long term, the demand curve increases. the supply of rentals will be considerably more elastic, as there will be sufficient time to build new properties or to transform them into new and improved properties. So, if the increase in demand continues for a while, there will be an increase in rents in the rental market, from the first to the second quarter, and a greater supply of rental properties in the market, as shown in the diagram 2. The usual demand and supply curve moves as follows in the real estate market. If there are also...... middle of paper ...... those who cannot afford the high prices are interested in the rental market, and as the demand in the rental market increases with it, the price of rental properties also increases. The options available to people looking for accommodation in the UK are currently expensive. The government is working to provide more properties to sell and buy at a lower price, but it will be a few years before the property market becomes more affordable again. Works Cited Begg, D., 2009. Foundations of Economics. 4th edition. Berkshire: McGraw-Hill Education. Blink, J. and Dorton, I., 2007. IB Diploma Program: Economics Course Companion. Oxford: Oxford University Press. King, M., 2011. Rents hit record high as housing demand outstrips supply. The Guardian, [online] July 15. Available on [Consulted March 20 2014].