According to the Office for National Statistics average house worth more than £500,000 ($664,107), but with many salaries are not rising fast enough to keep up with property price inflation. With the average Londoner’s salary is only just above £30,000.
The bad news – Generation Rent to become the “norm” for the majority of Brits
Owning your own home is a priority for most Britons, but for many it will be unlikely.
As house prices have risen sharply, a growing Generation Rent has been priced out of home ownership. Meaning renting is fast becoming the “norm” for the average UK national. As it is, in European countries and the US.
The good news (for landlords) – Rental yields and capital appreciation likely to grow as demand outstrips supply.
One winner, is the existing UK landlords and overseas property investors. Who will likely profit from the increased Rental yields and capital appreciation. Driven by demand for rental properties and the shortage of housing.
A HSBC chart-book recently reported the UK Property Markets continued move towards a housing shortage,
We simple don’t have have enough housing in the UK
House prices continue to rise.
According to the Office for National Statistics, London is leading the way with the average house price being over £500,000 and continues to lead the charts in house price growth.
Rents in London particularity continue to remain high
Source HSBC, Financial Times, Business Insider UK, ONS, RICS