The idea of the Boomerang generation first emerged during the credit crisis when people who had been living on their own were forced to move back in with their parents to save money. One hard-working 33-year-old professional – Claire Foster – tells her story of how moving back with her folks was only meant to be for a couple of months. But it has now been almost a year.
After a decade of living on my own, I moved back in with my parents. It was only meant to be for a few months as I’m looking to buy a house.
I sold my flat on the basis that I would move out and rent another property to keep my buyers happy and avoid risk losing the sale.
I assumed that by the time the sale of my flat had gone through that I would have at least found somewhere new and would use the few weeks living at my parents to process the purchase of my new abode.
But there was a fly in the ointment. Almost a year since leaving my old home, I’ve not found a new place and I’m still living at my parents.
I’ve been looking near work in Croydon where the price of an average property has risen almost £30,000 during the past year to £318,483, according to Zoopla.
All the properties I have seen have been so-called ‘distressed’ sales that need a lot of work. Mostly, they have been released onto the market following the death of the elderly owner or a couple getting divorced.
And all my viewings have been open houses, where prospective buyers visit the property at the same time rather than on individual viewings. It is fiercely competitive process and it all means that I still have not secured a property to buy. I thought I was in a great position with no chain, a good deposit and a solid mortgage offer, but it seems everyone else attending the open days is in the same position.
As a result, I’m continuing to live with my parents. I love them dearly, but there are undoubtedly challenges.
Last week, after a long week in my full-time job, I was questioned why I was still in my PJs at 10am on Saturday. And then there was the time when my parents told me they had nearly called the fire brigade after I seemed to have spent so long in the bathroom (washing long hair and manicuring nails into a professional shape takes time).
The pressure is certainly on me to buy a new space of my own, but I seem to be losing the battle so far against rising house prices. One of my other concerns was all my belongings from my flat pushing my parent’s home contents over the limit but they checked their Direct Line Home Insurance Plus policy and luckily they are covered up to £100,000.
Croydon has seen some of the fastest growth in house prices among London boroughs, along with Tower Hamlets. The rises have been so staggering in the area that it is now being described in newspapers as a ‘hot-spot’.
Having previously been perceived as being stuck in something of a 1960s timewarp, a huge cash injection is seeing the area being transformed. The town is being tipped as a future technology and creative base, with rents currently being considerably cheaper than the likes of trendy Shoreditch in the centre of London.
It also has good transport links, with three stations, buses and trams. The fastest trains reach London Bridge in 15 minutes.
Properties for sale in Croydon:
1. Four bedroom detached house for £1,950,000
2. Two bedroom flat for £245,000
3. Four bedroom semi-detached house for £525,000
House prices rose at their fastest pace for nearly four years during March, official figures showed today.
The average cost of a home in England and Wales increased by 5.6 per cent in the year to the end of March, the highest rate of annual growth since August 2010, according to the Land Registry.
But values dipped slightly during the month itself, falling by 0.4 per cent to leave the average home costing £169,124.
The London market continued to be the main driver of growth, with house prices in the capital soaring by 12.4 per cent year-on-year to reach a new record high of £414,490.
Growth was also strong in the East, with prices rising by 7.1 per cent in the 12 months to the end of March and the South East at 6.1 per cent.
But at the other end of the scale prices fell by 1.6 per cent in Wales year-on-year and they edged ahead by just 1.8 per cent in Yorkshire and the Humber.
Five regions also reported monthly price falls, with Wales recording a drop of 4.2 per cent, followed by the North West at 1.8 per cent.
Prices also fell in the East Midlands, Yorkshire and the Humber and the South East.
On a brighter note, sales levels continued to rebound with 63,123 homes changing hands during January, the latest month for which figures are available, 46 per cent more than in January 2013. Within this total, 1,011 properties sold for £1m-plus, a 61 per cent jump year-on-year.
The number of properties that were repossessed also continued to fall, dropping by 31 per cent compared with a year earlier to stand at 979 in January.
David Brown, commercial director of LSL Property Services, said: “Price rises may have slowed slightly, but this isn’t a backwards step for the market.
“Year-on-year house price growth remains strong and buyer sentiment is high.
“In terms of volumes, the UK property market continues to show significant and sustained growth.”
There has been a run of strong data on the property market in recent weeks, as a combination of strong demand and a shortage of homes being put up for sale has driven prices higher.
But today’s figures showing a month-on-month fall are likely to ease concerns that a bubble may be building up in the market.
They follow data from the British Bankers’ Association showing that the number of mortgages approved for house purchase fell for two consecutive months during February and March.
Housing intelligence group Hometrack also recently said there were signs of growing price resistance among buyers in London, which could slow the rate of house price appreciation in the coming months.
Britain’s economy grew by 0.8 per cent during the first three months of the year, the fifth consecutive quarter of growth, Government figures showed today.
The latest increase marks the longest period of continuous expansion since the downturn, and leaves GDP just 0.6 per cent below the peak reached in the first quarter of 2008, according to the Office for National Statistics.
There was also a fall in the number of individuals declared insolvent during the first three months of the year.
A total of 24,931 people in England and Wales went bankrupt or took out a Debt Relief Order or Individual Voluntary Arrangement during the first quarter, 0.3 per cent fewer than during the same period of 2013.
The figures are good news for the housing market, as they suggest the British economy is continuing to power ahead, providing strong support for employment.
The fact that individual insolvency numbers also continued the downward trend seen since numbers peaked in early 2010 also suggests the majority of households are not having problems keeping up with their debt.
Azad Zangana, European economist at Schroders, said: “These are good results for the UK economy and they confirm that the UK is one of the fastest growing economies in the advanced world.
“Looking ahead, we expect the economy to maintain a strong pace of growth, driven by loose credit conditions, low interest rates, and easing fiscal austerity.
“The rebound in the housing market is helping to boost household spending, while companies appear to be gaining in confidence and so are starting to increase levels of investment.”
The ONS said GDP in the first quarter was 3.1 per cent higher than it had been a year earlier.
Output increased in three of the four main industrial groupings within the economy, with output increasing by 0.9 per cent in the services sector, while it was up 0.8 per cent in production and 0.3 per cent in construction.
But agriculture continued to lag behind other areas of the economy, with output contracting by 0.7 per cent during the quarter.
The ONS added that construction output may have been affected by the storms and high rainfall in January and February.
It stressed that today’s GDP figure, which was slightly below economists’ consensus of 0.9 per cent, was only a preliminary estimate and was subject to revision as more data became available.
The housing market is performing strongly on the back of the UK economic recovery.
A combination of strong demand and a shortage of supply is driving prices higher, with Nationwide reporting that the average property value was 9.5 per cent up on a year earlier at the end of March.
Competition for properties has also become so intense that one in five buyers paid more than the asking price in March, the National Association of Estate Agents said.
Buyers are paying the highest proportion of a property’s asking price for more than a decade as a shortage of supply continues to drive values higher, figures showed today.
The average homebuyer paid 96.7 per cent of the asking price in April, the highest level since September 2002, according to property intelligence group Hometrack.
Demand for property continued to grow during the month, with a 3.3 per cent rise in the number of buyers registering with estate agents.
But the number of new homes being put up for sale failed to keep pace with buyer numbers, rising by just 1.9 per cent in April.
Unsurprisingly, the mismatch between supply and demand led to a further fall in the average amount of time a property spends on the market, with this dropping to 6.3 weeks – the lowest level since June 2007.
The typical cost of a home rose by 0.6 per cent in April, as growth momentum picked up in the regional housing markets.
Outside of London, 48 per cent of postcodes registered higher prices during the month, three times more than a year ago, and the highest level since June 2004.
Richard Donnell, director of research at Hometrack, said: “Improving market sentiment and low mortgage rates are supporting increased activity.
“The time on the market indicator delivers a strong indication for the overall health of the market and this measure has declined below 10 weeks across all regions.”
But he added that while London continued to register above average growth at 0.8 per cent, the rise was driven by lower value markets that offered buyers better value.
The group found that there were growing signs of price resistance on the part of buyers in London following recent rapid rises, and it said this could check the rate of house price inflation in the coming months.
The average time a property spent on the market in London rose to 3.4 weeks, up from 2.7 weeks, during the month.
There was also a fall in the number of London postcodes that registered a price gain, with 66 per cent posting rises, compared with 76 per cent during the second half of 2013.
But buyers still paid 99 per cent of a property’s asking price, although this was down slightly from 99.3 per cent in March.
Donnell said: “While these changes indicate very strong market conditions, they suggest that buyers are starting to become less willing to bid up the cost of housing at recent rates.
“The impetus for house price growth looks set to continue to transition into the regional housing markets over 2014.
“What is less clear is the scale of pent-up demand that exists to sustain further house price increases.”
Outside of London, price increases were highest in the South West during April, with the typical home’s value rising by 0.8 per cent, followed by the South East and East Anglia both with gains of 0.7 per cent.
Sales levels increased most in Wales and the East Midlands at 16.4 per cent and 11 per cent respectively.
But there was no change in the number of homes put up for sale in Wales during the month, while in Yorkshire and Humberside the number of properties on the market fell by 0.9 per cent.
Properties for sale in Wales:
1. Four bedroom property in Cardiff for £319,950
2. Two bedroom barn conversion in Carmarthenshire for £495,000
3. Five bedroom home in Cardiff for £720,000
Which are the most popular properties in April so far? From north London celebrity homes with contemporary interiors to renovation projects on the other side of the country, here are the most viewed properties on Zoopla.
1. This bungalow has talent – all £1,150,000 of it. While one of its previous owners Alesha Dixon is busy hitting the buzzer as a judge on Britain’s Got Talent, this three bedroom property in Hertfordshire is showcasing its contemporary interior design to prospective buyers.
2. A four bedroom semi-detached house in Manchester continues to attract attention. The property has been extensively modernized and includes solar panels, which provide a tax free income and free electricity.
3. What would you pay for a five bedroom flat? If you are seeking one of the apartments at London’s iconic One Hyde Park, you will need £68m. The accommodation spans an entire floor and boasts views of both Knightsbridge and Hyde Park.
4. A nine bedroom detached house in London’s prestigious confines of Kensington is being offered (POA) with full planning permission to extend the property to include a separate cottage, tennis court and garden pavilion.
5. An extraordinarily exclusive and highly secure property in central Knightsbridge near Hyde Park (POA), with 20 bedrooms.
6. The Bishops Avenue in London never seems to be out of the property headlines, having been dubbed Billionaires’ Row. This nine bedroom detached home is set behind high electric gates and costs £38m.
7. Buying a home in Sandbanks means you can count the likes of football manager Harry Redknapp as a neighbour. This five bedroom property is on the market for £6.7m and boosts view of Poole Harbour, a sweeping driveway, a leisure suite, a fully fitted media room and a 1,000 sq ft master suite.
8. Restoration projects continue to be fashionable, with this four bedroom detached house in Plymouth making the top 10 most viewed properties on Zoopla. It is for sale by tender.
9. Set over three levels, this four bedroom house in Battersea provides 1,700 sq ft of family living space. It is on the market for £1,575,000.
10. This nine bedroom mansion may look like it is set in the countryside, but it is in fact set in the heart of the London borough of Richmond. It may also be surprising to learn it is a new build. (POA)