Everyone wants a roof over their head, and since the Second World War, owning one’s home has been an aspiration of many Brits. However, with rents at record highs, many are struggling to save enough for a house deposit. Let’s be honest, it’s easy to get stuck in a cycle of paying the rent and bills and not saving, but even saving just a small amount each month will sooner or later add up. George Osborne announced such schemes as the upcoming Help to Buy
Therefore, I thought I would do some research into the Stamford property market and share with you my
findings. Stamford tenants spend on
average just under a third of their salary to have a roof over their head. According to my latest monthly research, the
average cost of renting a home in Stamford is
£778 per month.
When the average annual
salary of a Stamford worker, stands at £33,268
per year, that means the average Stamford
tenant is paying 28.0% of their salary in rent. I doubt there is much left to save for a
deposit towards a house after that, and that my Stamford Property Blog reading
friends is such a shame for the youngsters of Stamford .
You see one the reasons for rents being so high is property
prices being high. As I have mentioned
before, there is a severe lack of new properties being built in Stamford . It’s the
classic demand vs supply scenario, where demand has increased, but the number
of houses being built hasn’t increased at the same level.
Also, Stamfordians aren’t moving home as
often as they did in the 80’s and 90’s, meaning there are fewer properties on
the market to buy. If you recall, a few
weeks ago I said back in Autumn 2007, there were over 540 properties for sale
in Stamford and since then this has steadily declined year on year, so now
there are only 111 for sale in the town.
So, the planners in Stamford
haven’t allowed enough properties to be built in the town and existing Stamford homeowners are not moving home as much as they
used to, thus creating a double hit on the number of properties to buy. This is a long term thing and the continuing
diminishing supply of housing has been happening for a number of decades and
there simply aren’t enough properties in Stamford to match demand, these are
the reasons houses prices in Stamford have remained quite buoyant, even though
economically, over the last 5 years, it was one of the worst on record for the
country and the East Midlands region as a whole.
However, things might not be all doom and gloom as
originally thought, as a recent Halifax Survey
(their ‘Generation Rent 2015 Survey’) suggested more and more people may be long term, if not
lifelong tenants. In fact there is evidence in the report to suggest that the
perception of how difficult it is to get on the housing ladder is vastly
different between parents and people aged 20 to 45. It seems from this
survey that the state of the UK economy has
shifted priorities quite significantly in quite a short space of
time. With fewer people able to save up the deposit required by mortgage
lenders, more and more people are continuing to rent. This delay in moving up the property ladder
has driven rents across the UK up as more
people were seeking rental properties .
It is often said that more people in central Europe rent for longer or never own their own property.
The last two census in 2001 and 2011 show that proportionally the percentage of
people who own their own home in Britain is slowly reducing and, as a country,
we are becoming more and more like Germany.
That isn’t a bad thing as Germany is considered to have a more
successful economy, one of the main stays, often quoted, is because they have a much more flexible and
mobile workforce, (which renting certainly gives) and from that, they have a
higher personal income than in the UK.
Therefore, if we are turning into a more European model and
the youngsters of Stamford and the Country have changed their attitudes, demand
for rental properties will only and can only go from strength to strength, good
news for Stamford tenants as wages will start to rise and good news for
Stamford landlords, especially as property values in Stamford are now 5.4%
higher than year ago!
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