By Craig Smith
The BBC has produced an article today showing that house prices continue to rise and that families are being forced out of their homes due to ever increasing costs.
Facts & Figures
Before we all start getting scared and wondering just where will we all live in the next few years, lets look at some of the facts.
Yes, rent amounts have increased in the last few years in particular. But if we look at the amount they have risen in comparison with house prices, which have risen by around 59% in the last 10 years or so, the average rent amount has increased by around 44%. This means that Landlords are getting less return for their property than they would have done 10 years ago.
Current Rents Increasing
With this is mind and the huge amount of rental property that is now available, Landlords are finding it more difficult to increase the rent on a current tenancy. It is better to keep a good tenant in place rather than risk pushing them out with higher rents and having an empty period at the property. Most tenants who find their rent going up will notice that it might only increase by a small amount.
People Still on the Move
In the BBC report is suggests that it is now harder than ever to purchase a property. With lenders being very careful about the amount borrowed, buyers are finding themselves shaving to find bigger and bigger deposits. Although, all things considered, over the last 12 months we have generally seen a rise in the number of our tenants who are leaving their rental accommodation and who have purchased their own home. So the property market is still active, albeit slower than we might be used to.
More Homes Still Required
Many people comment on how many new homes might be appearing in their local area but the facts show that the amount of new homes being built has decreased. The Office of National Statistics shows us that the population ofBritain is ever increasing. Couple this with relationship break ups and more & more people wanting their own home, demand is ever increasing.
The End Result?
As buyers struggle to find deposits, the demand for rental property increases. In order to get the property market bump started again, lenders need to lower the deposit rates for mortgages!
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