Homeownership Beyond Reach For Many Tenants
Whilst rising house prices may seem like a good thing to homeowners there is a generation of buyers for whom homeownership is simply out of reach. Rising house prices and fewer a available homes for people to buy ave pushed prices to record levels.
The problem is that the alternative to homeownership is becoming less affordable as rents now also reach record levels across the country. The demand for rented accommodation has driven up prices and tenants are unable to save for a deposit to buy a home. There is an increasing number of tenants that have stopped saving for a deposit and this number has accelerated over the last couple of years. The housing market has had so much money thrown at it by the government that prices are now ow at an all time high.
To make matters worse for first tim buyers the government has unlocked pensions for people who will also be joining the army of buyers looking to become landlords in the buy to let market. Wealthy pensioners will be competing directly with first time buyers for precious homes that is just going to drive up prices. This is a good thing if you are a pensioner but not if you are looking to by your first home.
Estate agents are already busy dealing with buyers looking to invest their pensions in property. These wealthy pensioners have been dubbed Granlords and will be in a very strong position particularly as they have cash funds available. They will not be at the behest of banks or building societies who are often accused of taking months to arrange a loan on a house.
Pensioners will be able to go into an estate agent and tell them that they can complete any sale within a week or two and that they are looking for a bargain. Vendors will be falling over themselves to sell to them particularly if the market goes through a quiet patch.
In theory there should always be a good trickle of buyers now entering the market each year which is good news for the housing market. It will not always be as busy as it has been over the last couple of years and there may come a time when this new breed of buyer props up the market when it is going through a bad patch.