Britons have long held on to the belief that owning your home is the ultimate goal. But after a decade of house prices rising three times as fast as incomes, followed by a decline in the number of mortgages available after the bust, owning bricks and mortar is no longer a viable option for
everyone.
There is a lot of pressure on Brits to own their own homes, even though in the current market there are numerous barriers to entry, especially for the younger generation. Soaring living costs mean it’s a struggle for many households just to keep their heads above water each month, let alone have enough spare cash to put aside towards a deposit.
An estimated 1.5 million people aged 18 to 30 who are unable to access home ownership or social renting will be pushed into renting privately by 2020, according to new research. Those who don’t qualify for benefits but struggle to save enough money for the colossal deposits that most home
loans now require, are coming to terms with the fact that they may be renting for the long haul. A gloomy prediction for some, but others say this isn’t necessarily a bad thing. What is clear, however, is that if a generation of lifelong tenants is the future, we need to address the severe lack
of quality and affordable rental properties available.
With an ever-decreasing supply of affordable homes, the average age of first-time buyers is now 39 and rising. Add the difficulties in getting a mortgage and the high deposits required and you can see that young people being excluded from the market is an ever-growing problem.
Putting in place an affordable, well-run rental sector must be the right solution. Elsewhere in Europe sentiment is already far more favourable towards renting and it makes sense that the UK is heading that way too – particularly as young people are starting families much later and are less likely to benefit from the returns from soaring house prices seen by their parents’ generation.
Belvoir Lettings Northwich is the One Stop Specialist for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
For more information, please call 01606 783599. Alternatively, please email us at northwich@belvoirlettings.com
Source: http://bit.ly/ZfwemI
