Last week, I was told about two new predictions that I thought may interest you and will very probably apply to the Teddington market...
1. 70% of new
households will be one person households
Official projections
suggest that the number of households in England will rise to 26m by 2026 - an
increase of between 220,000 and 225,000 new households a year. Around 70 per
cent of these new households will be one person households. An additional
242,000 dwellings will be required each year to accommodate the second homes
market with more than half of the required homes being concentrated in four
areas: London, South East, South West and the East of England. NHBC statistics
show that there were just 113,340 housing completions in 2011, nearly 130,000
units shy of requirements.
2. The average age of a first time buyer is rising (now around
33 years old) and the average deposit increasing (£26,000)
Many of those new
households with housing requirements are not going to be able to access the
property market using the traditional mortgage market route to first-time home
ownership. The size of deposit has doubled since 2007 when it averaged £13,000
or 37% of annual income, to 79 per cent of annual income. (Source: CML
Regulated Mortgage Survey). This will create demand for new investment in
housing, whether in social or private renting, or investors assisting people's
efforts to buy their own home.
Regardless of where you look, things are very definitely on the up if you are a landlord. More people are renting and will continue to rent, very probably, their whole lives. For those of us savvy enough to take advantage of this trend, the futures bright! :o)
Do contact me if you're interested in getting into buy to let. I read all emails and comments and am happy to have a chat over the phone or email to offer my opinion and advice.
Rebecca Smith
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