Could The UK Become A Nation Of Tenants Instead Of A Nation Of Property Owners?
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With a continuing housing slump, rising inflation, interest rates most unlikely to get any lower in future,more printing of money than ever before(quantititaive easing)combined with distinct lack of signs of bnk lending to those wanting to get on the property ladder and this scenario set to continue throughout 2012 and beyond, I wonder if the phrase"UK a nation of tenants" could become more and more common.
Responses (5)
This is actually a big question and I think only time will tell. Certainly, I understand that the rest of Europe already accepts renting as the norm and perhaps the UK may well decide that is the way as well.
For a swing back to prolific property owning, there is no doubt house prices just have to fall. We need a free and vibrant house market for property equity to have any real value and that can only mean lower and stable house prices alongside an improving economy and sensible and well secured mortgage lending. But I cannot see any of that happening short or even medium term.
On the other side of the coin, current private rents are also too high and have historically been so due to corporate and private landlord greed and the rush for buy to let investments where they simply have to pay. With the housing benefit situation under dramatic review and change, we are going to see a lot of people who can neither rent successfully or buy, so where does that leave them? The government could commit to building new housing stock but it's like everything, there is far too much demand to cope successfully and perhaps not being a 'reception centre' for the rest of the world may well help.
I actually think this will become a major concern in 2012 and we could well see a lot of estate agents,conveyancing firms and solicitors slide into administration as a result. Having said all of that, I am seeing a lot of new builds going up locally, possibly as a result of the easing of planning laws, and I do hope that all such developments continue to involve a high percentage of social housing to balance whatever market is out there.
As a young professional who went to University, got a good degree and was lucky enough to instantly get a job (which I have been in for 3years), I feel as though I will never be able to get on to the property ladder.
It may be possible in the future but only if I have a partner... I find it utterly frustrating that even though I have done everything "by the book" I am unable to independently own something.
I recently tried my luck at a shared ownership scheme but was not chosen as a successful candidate for the 8 one bedroom properties that were available. Heres to a life of wasting money on rent!
Hi Summer .. I can understand your dismay in the matter, especially as you have worked hard for your education and the disappointing expectations in the property situation. When I worked in the mortgage market in the late eighties, young professionals were regarded as excellent mortgage candidates but alas the housing and mortgage market has changed dramatically over the last twenty years or so. Personally I have never believed that a 'thriving housing market' is a prime indicator of a thriving economy and truth be known, and through unnecessary greed, we have priced the market towards the richer end of society. First time buyers are the life blood of the housing market and without them, the whole thing grinds to a halt. As I said, house prices have to go down to levels where people can actually commit to buy again.
Have you thought of talking to a Housing Options Officer at your local council? They can often have their finger on all shared ownership schemes within their manor and may be a good place to make progress. I guess it's just a case of being in the right place at the right time!
Thanks for your response Snoopy. I am registered with the local authority housing department and also with First Steps, the Government's Affordable Housing Scheme, unfortunately it seems that I will have to wait for another local scheme to become available and try again.
I am glad that the Government thought that 8 one bedroom flats was an adequate number of apartments to satisfy the clear demand for shared ownership/affordable housing schemes in my local area in 2011. I thought they were supposed to be trying to help more people get on the property ladder!
Weren't we all a nation of tenants back then before the Tory government sold off council flats at a discount. Isn't that when this mad craze in the UK about "Have to own a house" started? I could be wrong though.
I think at that time, HSP, people had a realistic chance of getting on the ladder and the council house deals just removed that renting sector of council tenants who had the wherewithal to buy. I never thought it fair that paying council rent for so many years earned you a substantial discount on market value and these people simply waited for the three year pre-emption period to expire and then sell at substantial profit, almost a licence for printing money so in many ways, the Tory government was far too accommodating. I think you are right in thinking it did fuel the mad craze to be property owners and would have been okay, to a degree, had greed not cut in and prices spiralled because people were mug enough to continue buying and feeding their 'want' factor. Society has been the author of its own misfortune here.
Hi CS Happy New Year to you.
I concur with all that's been said here.
It's not so long back that our 'great industrial nation' was denegrated as a 'nation of shopkeepers' and now we're a 'nation of tenants', I wonder what else we could now be labelled as?
I can see this in the future....Also people with mortgages are now going into interest only mortgages ..which is like paying a rent ..plus you still have the upkeep of your own home to pay out for...but wont own it ,unless you have some money in savings ,insurance or win the lottery as means of paying it up in the future...Renting seems a good idea.....I find it strange me saying this ,,but times do change..
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