Pressure on housing needs around the country are being stretched to absolute breaking point. With social housing stock at insufficient levels to cope with demand and with this continuing to spill over into the private rental sector, rents are continuing to rise, placing massive financial strain on Tenants up and down the country.
Supposedly out of recession, Britain’s debt is still increasing at an unprecedented level, currently at 1.25 trillion pounds, rising each day by nearly half a million pounds. The government has hardly made a dent in the deficit and there is no money to build new homes.
The government are forced to rely on private investors, offering them various tax and grant incentives to encourage new building projects, however astonishingly a recent report confirmed that given the current influx of migrants each year, a migrant baby boom, high divorce rates, more single people, and people living a lot longer in general, a new home would need to built every six minutes to meet existing and future demand.
In fact, new homes being built now, are mostly non affordable for first time buyers, despite the government promising they would be. Some would argue that this makes the typical first time buyer home more readily available as it allows people who live in these properties to move up the ladder to more affordable second home, however the fact is new homes aren’t being built quick enough to keep up with our booming population.
With our borders being opened to two of the poorest nations in the E.U in January next year, Bulgaria and Romania, could this tip our housing crisis really past the point of no return, making it near impossible for young people and future generations to ever get onto the property ladder. It seems that we really are becoming a nation of renters.
In just ten years from 2001 to 2011, the number of tenanted households has risen from 1.9 million to 3.6 million. In what is dubbed “generation rent”, many young people have been priced out of the housing market forever. What is now very frustrating for them is that paying a mortgage on your own home is currently cheaper than renting, a transition which took place over the last year or so.
Off course has been helped by record low interest rates, however still, its all about getting hold of that deposit to persuade the banks to lend. As the majority of deposits come from wealthy parents, also know as the bank of mum and dad, those who aren’t in this fortunate position, feel cheated by the system.
If anything though, its not a bad time to start a letting agency if you are looking for a new work or business opportunity, as the rental markets astonishing growth doesn’t look like slowing down any decade soon.
Article by Letting Vision – providers of start up software and estate agent websites.