The UK is known to be one of the world’s most property-focused countries. It’s in our mindset that being successful means buying our own home.
But could 2017 see more people renting than buying for the first time since the 1930s?
According to research by Countrywide, renting is becoming more and more popular due it its ease and convenience. So much so, in fact, that less than two-thirds of people now own their homes – the lowest level in the UK in three decades.
Countrywide points to several factors that might cause the balance to tip in 2017: this first is uncertainty about home buying following the Brexit vote and the second is the shortage of property supply.
Thirdly, changes to stamp duty back in April have led to higher charges for many buyers, which may well put people off investment properties and second homes.
These reasons for not buying indicate that there are many potential buyers out there who are choosing not to take the plunge because of market conditions. However, a modern breed of ‘committed renter’ has also been identified by property experts.
This type of person chooses specifically to rent (even if they could afford to buy) because of the flexibility it brings, allowing people to move frequently and to avoid the responsibilities attached to home ownership.
Countrywide’s research also indicates that rents are rising fastest in the North of the country – and in Manchester in particular, where there average rent has gone up 7.1% in the last year, and 12% of properties are let within 24 hours. Indeed, all ten of the cities with the fastest rental growth over the last twelve months are in the North or Midlands.
Having said all of this, our figures show that sales are booming – compared with when the recession hit a few years ago and renting popularity surged, people are now clamouring to buy Manchester property.
It might be, then, that it’s a case of location, location, location. While the big cities like London, Manchester, Leeds and Birmingham may continue to see strong investment, smaller towns may miss out on sales due to the renting trend.
Whether it’s sales or rentals that you’re after, we at Julie Twist Properties are convinced that we have the deal to suit you. Visit our property pages to find out more.
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