More expensive for first time buyers to step on property market
Direct Line Home Insurance indicate the average first-time buyer must spend £43,623 more than they did in 2016 to buy their first home. This represents a 24 per cent increase.
Dan Simson, head of Direct Line Home Insurance, says: “The rate at which FTB prices have been increasing is frankly frightening. However, this generation of property owners are facing the challenge of dramatically increasing property prices in traditionally popular areas such as London and instead are buying in places that are less well-known. We may see an even more dramatic emergence of these ‘young towns and cities’ with the increasing prevalence of remote working that enables people to be far more flexible as to where they live.”
Buyers Can’t Afford Homes So Rent
With the housing market booming, many people cannot afford to buy a home. This has created a new category of home renters: the buyers can’t afford homes. These renters are looking for a place to live while they save for a down payment and other costs. Whether the reason is that buyers are not able to afford to buy a house or a lack of credit, this group is suffering.
Millennials have been eschewing homeownership for years, with one out of five planning to rent forever. The strained housing market in 2022 is turning this millennial dream into a harsh reality. One out of three renters will be priced out of the homebuying market by then, due to soaring home prices. The current market doesn't encourage these renters to buy, however.
There are many factors that play into the decision between buying a home and renting one. The first consideration is the length of stay. For example, if you buy a home and live there for ten years, the value of the property will have to increase by that same percentage. If the value doesn't rise, you lose money. Renting a home can be a better option if you want to stay in a city for several years or for a long time.
There are opportunities for landlords
So, no matter the reasons for rental property, there is high demand, and this means landlords should consider how they can attract the best tenants. Yes, demand means you should welcome some clients without any problem, but you should look for the best candidates and clients for your needs.
If you have a particular group you wish to let to, we can help you out. We know the local rental market very well, and we are pleased to say we have helped a great number of landlords achieve success in the rental market.
Contact The Letting Line for letting assistance in 2022
If you are looking for guidance or assistance in the Enfield rental market, we can help. At The Letting Line, we are a specialist letting and property management agent serving Enfield, Barnet, Potters Bar, Brookmans Park and surrounding areas.
We can arrange a free valuation for you, and if you are looking to contact us, please call us on 020 8342 1234.