Rental Renaissance

House to Rent

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”.

But why?

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.

New Build HomeBuy – A Helping Hand for First-Time Buyers

Housing Corporation

First-time buyers are having a difficult time at the moment, and, as with most things involving money, the less well-off you are the harder hit you’ll get.

So how can this be helped? Today, we want to bring your attention to one possible option: the New Build HomeBuy government scheme.

By initially purchasing a share (normally 25 – 75%) in a property, rather than the entire thing, you massively reduce the initial amount that has to be paid. The enormous investment when first buying a home is the biggest stumbling block for a lot of people.

The remaining share of the property you then pay rent on, which itself is at a reduced rate.

This isn’t where it ends though. After your initial purchase, you can buy a greater and greater share in your home, a method known as ‘staircasing’. This allows you to work all the way up to having a 100% share in the property, at which point, rather obviously, you completely own it.

If, at any point, you think, “Wow! I really want to sell my house!” then that avenue is still open. At any time up until you own 100% of the house, you can sell your share of the property to somebody of your landlord’s choosing.

It’s easier to sell once you’ve achieved complete ownership though, as you no longer have to consult a landlord. From here, you could sell with the intention of moving, stay in the property without having to pay rent, or sell to a company that buy property and rent back to you, allowing you to cash in on your newly bought house without having to move out.

Of course, when considering your options for buying you need to find the one that’s right for you. If monthly payments of rent are going to be a problem, then this scheme won’t work, just as it won’t work if you can’t get the initial down payment together. In these circumstances, there are still options for you, but it’s going to be hard, especially with the current state of the housing market.

Sellers drop asking price

A smaller amount of buyers in the housing market has forced sellers to drop the prices of their homes in order to become more competitive. It seems that they days when people would battle it out to buy a house are behind us, as figures suggest a drop in prices to try and lure buyers to their property.

First signs show a drop of over 2% and almost 4% in London. Although these percentages seem small on a property of £200,000 you are looking at a large loss.

As there are even fewer buyers out in the market then it seems that they have a little more control over the property market. More choice means sellers will have to make their process competitive and appealing if they want to sell. Holding on to an unrealistic price will not only put buyers but could also mean that a property will make a much larger loss in the future of may even become repossessed.

Yet it is not only the house prices that are making buyers be more careful but also mortgages. It seems that buyers are being a lot more selective about what they opt for and are considering a much great choice of deals. With a vast amount of banks offering mortgages these too are having to become more competitive with their lending and ‘deals’ that they offer.

Even the slightest rise in interest rates could force people to sell up which would mean that the market could be saturated with houses that people just can’t afford to keep, which means even better deals for the buyers and a greater loss for people who are desperate to sell. This just re-enforces that importance of selling before the debt gets too much.

It is believed that a few of the potential house sellers are waiting for the interest rates to be announced in September, but for some this could be too late and would mean the loss of their property and any investment that they have in their property.

It still looks like sellers can be burned especially if they leave it too late or bury their heads in the sand. If you are finding yourself in a similar situation and want to get out before the going get too tough then why not look at a Quick Property Sale or the option to Sell your Property and Rent Back which would mean you wouldn’t have to leave your home.