There are mixed views
about what will happen to property prices this year. A poll from the Guardian reveals what their readers predicted:
House Prices will:
Rise by more than 5% 21.4%
Rise by between 0%-5% 9%
Stay at their current level 10.8%
Fall by between 0%-5% 19.8%
Fall by more than 5% 38.9%
What do you think?
Four years ago, 71% of all households owned their house in the UK. 2 million of those may end up selling their house to rent, creating a whole new market of “sell to renters”.
A survey by unbiased.co.uk reveals that freedom to travel around the country was cited as one of the most popular attractions to renting and one in eight people no longer aspire to owning their own home. This is a vast shift, but for many owning a house is a dream only few can now achieve. Debt-laden graduate’s still job hunting will struggle to ever provide a 25% deposit without the support from parents. Many blame buy to let speculators for pushing up prices in the first place but wherever the blame is placed the reality for many people is a future of long term renting. For those that are already on the property ladder, many have struggled with the worry and stress of the property market volatility that much that they are considering the option of Sell House for Cash and renting.
Renting is a popular option for countries like Germany, where nearly two thirds of private residences are rented. In Britain, 14% were rented in 2008, a stark difference to the 55% that were back in 1939. Short term tenancy agreements give little security for renters at the moment and critics say that legal changes are also needed to help improve tenant’s rights, if these changes occur then just maybe more people will buy property and rent back or be more content to rent in the first place and feel less pressure to achieve home ownership.
A mere fifty years ago the average price of a house in Britain cost just £2,507 and one in seven of those homes had an outside toilet. Today, the average house price cost £162,085 but understandably just two in every 1, 000 homes has an outside toilet. The rate of rampant property prices have rose by 273% in real terms between 1959 and 2009, with the growth of earnings only rising 169% over the same period.
The recent decade to decade data published paints a picture of Britain being more divided today than ever before with regional house price differences. Britain has fallen further and further behind London as the rise in real time earnings have increased in Greater London at a rate matched by no other city or region, but interesting Yorkshire and Humberside hold the lowest house prices just as they did fifty years ago.
Another stark difference is the substantial changes in both the number of households and their composition. As recently as 1971, fewer than one in five households were occupied by a single person against this rising to one in three by last year. This may explain why purpose built flats now make up 19% of new builds. Whilst semi detached houses were the hallmark of the 1930 and made up 41% of all properties between 1945-1964 they fell to 15% by 1980, bungalows have also declined, whereas detached houses now make up 36% of new builds since 1980 compared to 10% between 1945 and 1964. The other obvious differences of course are that our houses are warmer, the water is hotter and the toilet is at least indoors.