Once again we have had a busy couple of weeks here at Martin & Co Shrewsbury, life and lettings go by in a dizzy whirlwind of viewings, meeting new tenants and landlords and everything else that comes with a busy work life. But would we have it any other way? Of course not!
We recently came across this article on Property Reporter and thought that it was a really interesting read. It indicated that now is the time to invest in buy-to-let property as first time buyers are discouraged further...
14% of tenants think they will never buy as aspiration gap widens
A recent survey revealed that 94% of tenants want to become homeowners.
Over one fifth (22%) of tenants are expecting to be able to buy the end of 2014 and a further third (34%) believe they will be able to buy within the next five years. Over a quarter of tenants (27%) believe they will buy at some point in the future, but cannot pinpoint when.
However the aspiration gap is widening. The proportion of tenants who think they will never be able to afford to buy has risen to 14% in April 2014, up from 10% in February.
Lack of cash deposit remains the biggest obstacle to homeownership for prospective buyers, with 44% of tenants reporting that saving a deposit was a factor prohibiting them from buying. The second most common constraint was the high transactional costs like stamp duty and legal fees (16%). Only 10% of tenants say they are worried an interest rate rise will push up mortgage repayments, down from 13% in February 2014. Other concerns included insufficient income to support a mortgage (15%), possibilities of future unemployment (7%), falling house prices (4%) and decreasing income (4%).
Saving for a deposit remains to be the number one challenge preventing many prospective home-owners from getting on the ladder – even with Help to Buy in position. The scheme is still a keystone in the recovery of the first-time buyer market. Some areas of the country are still limping out of the recession slump. Buyers in these areas are still waiting to feel the effects of the recovery in their wallets. In the meantime, while prices continue to rise, they need help in order to be able to get onto the housing ladder.