Posts tagged ‘renting’

Young people unwilling to make sacrifices to get on property ladder

The attitude of young people towards renting is changing as many find themselves priced out of the property market, a study showed today.

Renting 2

There has been a marked shift in the opinions of 20 to 45 year olds towards homeownership, with many now accepting that renting enables them to live in a property they would either not be able to afford to buy or would have to make years’ of sacrifices to do so, according to Halifax.

The trend represents a marked shift from when the research was first carried out in 2011, when young people wanted to buy a home, but either could not afford to do so or dared not try to for fear of being rejected by mortgage lenders.

But the latest research found that one in five 23 to 27 year olds claim they have no desire to own a home, while 46 per cent think Britain is becoming more like Europe, where renting is the norm.

Young people are also increasingly unwilling to make the sacrifices necessary to get on to the property ladder.

The study found that 86 per cent of potential homeowners refused to sacrifice the quality of accommodation they currently lived in to help them save more towards a deposit.

At the same time, 54 per cent were not prepared to make other sacrifices to get on to the property ladder, and 57 per cent would not compromise on the quality of the first home they bought.

Craig McKinlayCraig McKinlay, mortgages director at Halifax, said: “With attitudes softening towards the social implications of renting, and the number of people who say they will never own a property increasing, we may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration simply to live in one.

“It seems that people are now beginning to accept a lifetime of renting and this would not only change the way the property ladder looks in the future, it could even bring into question whether or not it will exist at all for some people.”

But 40 per cent of people still said they did not want to raise children in a rented property, and 51 per cent worried that renting would have a negative impact on their retirement, although both figures were lower than last year.

Halifax also pointed out that the average cost of renting a home in the UK was now £1,488 a year more than owning one.

It added that the availability of 95 per cent mortgages had increased significantly during the past year, while schemes such as the Government’s Help to Buy should make it easier for people to get on to the property ladder.

Mr McKinlay said: “Researching the market and accessing the support that is available for first-time buyers could make a real difference in realising the dream of owning your own home.”

The plight of first-time buyers has not been helped by recent strong gains in house prices, which have left the average home in England costing £259,745, according to Zoopla.

The Office for National Statistics also recently reported that house prices in the UK had reached a new record high.

Halifax questioned 8,026 20 to 45 year olds and 1,005 parents online between February 14 and 23.

 

April 18, 2014 at 8:00 AM Leave a comment

Kerry Katona moves into £3,000 a month mansion

Pregnant Kerry Katona has allegedly moved into a £3,000 a month mansion despite being declared bankrupt for a second time.

Kerry Katona

The singer is understood to be living in the five bedroom country home in Oxfordshire with her fiancé George Kay and her four children.

The gated property reportedly boasts five bathrooms and four reception rooms.

The Big Reunion star, who was previously married to Brian McFadden and Mark Croft – was first declared bankrupt in 2008.

She told the Telegraph last year: “Money’s an issue for me. I’m really weird around money. I feel like I have to pay and bought my husband [Mark Croft] whatever he wanted: he had a Ferrari, a Lamborghini, an Aston Martin, a Porsche.

“He kept changing them, but we always had a few cars at one time.”

Other country homes to rent in Oxfordshire:

25.02.14 Oxford 1

Five bedroom detached house for £3,200 a month

25.02.14 Oxford 2

Five bedroom house to rent for £4,250 a month

25.02.14 Oxford 3

Five bedroom property to rent for £5,500 a month

February 25, 2014 at 2:18 PM Leave a comment

Buying is better (more profitable) than renting. However, it’s location dependant.

Buying your own home continues to be more profitable over the longer term compared to renting – but, as always, it all depends on location.

iStock_rental-house

Research by Zoopla found that Aberdeen is the most cost-effective town in Britain for buying property compared to renting, while London is the least.

In a seven year period, the average property owner in the Scottish town can expect to be £99,040 better off compared to the equivalent renter.

The average property price in Aberdeen is currently £206,060 with average monthly rents at £1,275.

London is currently the most renter-friendly location in Britain. After seven years, a typical renter in the capital would be £82,412 better off than a buyer with a 10 per cent deposit of an equivalent property.

It would take 18 years for a London buyer with a 10 per cent deposit to begin to be financially better off compared to the equivalent renter.

Bournemouth is the second most renter-friendly town in Britain. With average asking prices of £380,206 and average rents of £1,024 it would take 22 years for a buyer with a 10 per cent deposit to be better off compared to a renter in an equivalent property. After a seven-year period, a typical renter in Bournemouth would be £30,719 better off than a typical buyer with a 10 per cent deposit.

The calculations are based on a conservative annual growth in house prices of 4 per cent.

The Zoopla methodology compares all of the costs associated with buying or renting as well as increases in asset or savings value over time. The analysis forecasts the amount of time it will take for buying to become more cost effective than renting and compares how much buyers or renters are financially better off after the average tenure of a house.

Properties for sale in Aberdeen:

1. Three bedroom semi-detached house for £225,000

11.02.14 Aberdeen 1

2. One bedroom flat for £100,000

11.02.14 Aberdeen 2

3. Four bedroom detached house for £469,995

11.02.14 Aberdeen 3

February 11, 2014 at 11:22 AM Leave a comment

Why is renting so expensive?

This is a legacy post from the findaproperty.com blog which is now maintained as an archive within the Zoopla blog. Links have been preserved.

How much do you spend on your monthly rent? And if you’re no longer a renter, how much did you pay the last time you had a landlord or letting agent to keep happy? Unless it was a very long time ago, you probably spent a pretty penny and certainly more than you wished you had. So spare a thought for those who rent now, especially the growing numbers of single-person households living in small homes.

That’s because the latest FindaProperty.com Rental Index reveals the cost of renting a flat has reached an all-time high. Rental asking prices for studio flats have increased by nearly 7% in the past year to reach an average £718 a month, while one-bedroom flats increased by 2.5% to a record £660 per month.

It’s all smiles when you get the keys to your new rental home, but affording the monthly rent isn’t always so much fun

Overall, asking rents have increased in the first quarter of 2012 and are now at £868 per month, 1% up on the same time last year, but below the record high of £890 in September 2011.

But it’s the proportion of take home income spent on letting a home that brings the renting story to life.

Tenants are now spending on average 38%, or £10,416, of their typical £27,242 net salary on rent. In London, it’s even more – households spend 71%, or £25, 824, of their average £36,384 net income on paying rent. Or think about it another way – the average rental household in London spends nearly as much on their rent in a year as the average UK household takes home as income.

There’s an important regional story here too. Renters in South East England spend the next highest proportion with 42% of take-home income going on rent; in the South West it’s 39%; in the East of England it’s 33%; and in the West Midlands, Wales and the North East it’s 32%. Those in Scotland spend 31% of their take-home income on rent; in the North West and Yorkshire it’s 29%; and in the East Midlands it’s 28%.

But what’s causing this? Quite simply, rents have risen because of stricter lending rules which have made it harder for aspiring buyers to get a foot on the property ladder. As a result, less of us are buying, more of us are renting and the increased demand for homes to rent have forced asking prices up. The good news is that mortgage lending was 30% up in March compared to January, according to the Council of Mortgage Lenders.

And while some of that increase is down to buyers scrambling to complete their sales before the end of the stamp duty holiday for first-time buyers, it’s still a good sign. Let’s hope we don’t have to wait too long for the trickle down affect on rents.

May 22, 2012 at 10:45 AM Leave a comment

Renting a property: Are you being safe?

This is a legacy post from the findaproperty.com blog which is now maintained as an archive within the Zoopla blog. Links have been preserved.

If you’re a renter, or have ever rented a home, you’ll already know the toe-curling truth about the sector – it’s expensive and involves, at least at the beginning of a lease, an awful lot of money changing hands.

The other thing about renting is that it’s a wholly unregulated industry, which means anyone can set themselves up as a letting agent. This becomes a problem when inexperienced letting agents go bust or disappear overnight taking renters’ (and landlords’) money with them.

Thank goodness then for SAFEagent – a scheme created by agents to help make the lettings industry “safer” for renters. And what better time to remind ourselves of the positive work the scheme is doing than during SAFEagent Awareness Week which was marked today in the House of Commons.

Are you safe? Look out for the SAFEagent kitemark when using a letting agent. SAFEagent Awareness Week was marked at the House of Commons today.

In a nutshell, SAFEagent is an income protection scheme that aims to stamp out the devastating stories of renters being left homeless, cashless and without a legal leg to stand on when their letting agent collapses. The idea is that would-be tenants (and landlords) look out for the SAFEagent kitemark (pictured above) and choose their agent knowing they have income protection in place. This simply means that renters (and landlords) are protected if the letting agent goes bust or tries to rip off its customers.

It’s of course worth remembering that the vast majority of letting agents are reputable, however, the unregulated nature of the industry means risky agents do exist.

Today’s gathering at the Palace of Westminster was a great opportunity to hear from SAFEagent about their success. After launching to the public in September last year, SAFEagent already has close to 2,000 agents signed up and plans to expand even further. It’s backed by some big names including the Association of Residential Letting Agents (ARLA), the National Approved Letting Scheme (NALS), the Law Society and Royal Institute of Chartered Surveyors (RICS).

So whether you’re a renter or a landlord, the next time you use a letting agent, check they’re a SAFEagent first. It makes sense to be protected.

May 15, 2012 at 4:35 PM

Older Posts


Zoopla.co.uk

Search over 1 million properties for sale or to rent on our site from more than 18,000 agents and developers, including all of the UK's leading names.

Posts delivered hot and fresh to your inbox. Signup for free to subscribe, (No spam... ever) and join over 16,000 others.

Enter your email address below:

Recent Posts

Follow Zoopla

Archives

About the Zoopla blog

The Zoopla property blog is maintained and edited by the Web Content Editor @ Zoopla Property Group Ltd Myra Butterworth.

Follow

Get every new post delivered to your Inbox.

Join 433 other followers

%d bloggers like this: