By Mike White, of lettings agent Martin & Co in Norwich
Aspiring homeowners face a tougher time than ever getting on to the property ladder. Due to tough lending policies over the last two years many ‘would-be homeowners’ have not been able to take that first step on to the property ladder. Many industry experts are warning that the downturn has fundamentally changed the market, because renting is now the only option for millions of people across the UK. The reality for “Generation Rent” is that rented accommodation is the only option for the foreseeable future, with the average age of first time buyer’s predicted to be 38. The UK’s current housing shortage along with the on-going mortgage squeeze has meant the private rented sector is going from strength to strength, along with increased opportunities in the buy-to-let market. Multimillion-pound funds from institutional investors such as Legal & General and Aviva are looking to acquire suitable property, along with current landlords looking to expand their portfolios. The Council of Mortgage Lenders (CML) has reported an 8 per cent increase in buy to let mortgages in the fourth quarter.
If the recent rise in house prices continue then first time buyers will only face an increasingly tough challenge. Figures released recently showed a 0.7 per cent rise in house prices during January, this is the ninth successive monthly increase. The economics consultancy’s opinion is that the price recovery is now “firmly entrenched”, setting up the rented property market to be an increasingly lucrative area for years to come. The predicted growth looks like great news for the UK’s landlords.
For more information call Mike on 01603 766860