Tenants or homeowners?
More than 30% of all those who live in London and are still not homeowners, seem to acknowledge the fact, that buying your own home/property in London is a pathway full of difficult choices and obstacles. According to independent research, because of the current exponential growth of London population, demand within the housing market seem to be set on a sure pathway to growth.
Hopes and Age.
Do people give up, or do people adapt?
Here’s what I’ve found out:
According to an independent research based on more than 2000 adults, who are all at the time being tenants, without previously ever owned a property, results show that 33% of all surveyed assume they will never be able to purchase a home of their own.
Stats clearly show, that many people in London face extreme difficulties walking down the road to owning property, while great first-time buyer opportunities come only to few. High property prices and rising housing rents mean this is a downward spiral and the percentage of renters in need of housing is only set to grow.
From all participants, the percentage of people who believe they will be tenants for life, rises all the way up to 65%. This means that more than half of all participants falls in the range of 44 and 55 years old. This ratio clearly illustrates that the majority of British have lost hope to ever be a landlord on their own.
Great News for Landlords
“One’s rubbish is another man’s treasure.”
Although this may sound rather discouraging to all tenants planning their first home, the survey is great news for everybody involved in buy-to-let and renting industry.
According to another report based on data from The Post Office, about 10% of interviewed participants say they will apply for financial help from the “Bank of Mum and Dad” in order to catch up with funds!
About 25% of potential buyers are looking forward to more help from our Government, along with another 15% who anticipate refunds in no stamp duty for first-time homebuyers.
Expectations in 2017 and the Property Market?
For what it worths, there will be stability.
According to Rightmove, one of the leading property listings operator, property prices have seen a decrease by 2.1% which appeals to a bit over £6511 per property and that’s December alone. The average price floats around £300 000, which is still a strong sign for growth of 3.4% compared to 2016.
This monthly dip is part of a 6-year trend in seasonal average. Most residents are unlikely think of relocating, which is another factor boosting property prices. The number of properties to sell may have risen to 5.2% for the last two months, but new offers are only up by 2%.
According to market behaviour, there is a certain level of flexibility, which is worthy of admiring, especially in the post-Brexit era, but experts believe that it will eventually hit on prices.
What do Professionals have to Say?
Miles Shipside – one of Rightmove’s housing market analysts, shares his thoughts:
“For the housing market the uncertain outlook has meant a head a heart tug of war between stay put and carry on moving.”
Despite current trends, Shipside predicts that average property prices will hold their ground in 2016, which inflation expected to fluctuate around 2% in 2017.
According to Rightmove, there is high demand in the capital, with central London performing on a lower paste with an anticipated drop of 5% in 2017, while outer London properties could grow up to 3% in value.
According to Kevin Shaw, sales director at Leaders estate agency, the volume of purchases and pricing fluctuations will remain stable to how the housing market developed in 2016. One of the positive sides of the market today are the historically low-interest rates, which could be an opportunity for many to nail their mortgage are a great rate, thus improving overall stability.
According to Patrick McCutcheon, of Dacre, Son & Hartley, 2016 will end in a beneficial and encouraging outcome. Even though the volume of current properties on sale relates to about 80% of we had back in 2014, demand has kept a steady pace, especially for first-time buyers of family homes.
For the last year, buy-to-let activity has dropped by 13.2%. Despite all the new tax policies aimed at BTL landlords and of course – Brexit, London continues to develop and evolve in terms of property demand and sales. With housing becoming ever more valuable, renters, landlords and estate agencies will have to be agile in order to adapt to the many complicated and dynamic changes the niche has in store.
A bit about me:
I am a member of the Fantastic Cleaners end of tenancy cleaning department. As an on-field cleaner, I constantly gather experience in various rental property issues along with maintenance and repairs throughout central London, north London and some other parts of greater London. This is a part of an ongoing research of mine, exploring current housing trends. If you like to add, note or simply ask a question regarding my work, please do not hesitate say it out loud. I think the London market is yet to face some highly dynamic changes and the best way to catch up is to stay informed!
February 7, 2017