Is renting becoming a long-term solution?

 

Owning a home remains the dream of most Brits, but with prices constantly increasing and the supply shortage ever presented, is it maybe time to change that dream?

For many Londoners, the idea of owning a home sounds amazing, and very far out of reach. The average house price in the capital sits somewhere around £800,000, the average annual salary is far from it, at around £40,000.

https://www.buyassociation.co.uk/2017/03/09/buy-london-first-time-buyers/

And although this is a rather drastic example, things aren’t looking an awful brighter throughout the rest of the country. Britain’s housing affordability is low, no matter of the region you’re looking at.

Apart from those who might be inheriting a respectable sum or who know they can bank with mum and dad, project homeownership may slowly be dying in the capital.

So the question becomes, is it time to adjust our expectations, if we can’t change the market?

To be fair, we wouldn’t be the first ones to do so. Many European countries see renting as the norm. Across Europe’s core countries people live in rented accommodation, and they do so very happily.

Seemingly, developers are also slowly coming around to the idea. In fact, they’ve given birth to a whole new sector in the market: build-to-rent. And it’s booming.

The number of build-to-rent homes being under construction has multiplied by four in recent years, with more to come.

And even the Government and some of the industry’s biggest players are showing their healthy support for the sector. The Government recently published its Housing White Paper, clearly giving emphasis to making the private rented sector more stable and attractive.

The industry has now followed suit. Only this week, 20 of the country’s biggest developers and investors have signed a pledge to offer three year tenancies to renters.

This, in a country where tenant rights are still far behind landlords rights, is a major step to create a sector where a family would happily choose to live in rental accommodation.

https://www.buyassociation.co.uk/2017/03/14/build-rent-deliver-240000-new-homes-2030/

Of course, this shift in thinking and attitude won’t happen overnight. It’s a lengthy process that may take some time for people to be comfortable with the idea to never actually “own” where they’re living.

One thing, however, is for sure: build-to-rent developers are trying hard to speed up the process by creating stunning developments that offer everything a tenant could ask for.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

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Is renting becoming a long-term solution?

Is renting becoming a long-term solution?

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