One of the key components in the property market in the past ten years has been the rising age of first-time buyers. This hasn’t been a shock or a surprise. The rising cost of homes, and the need to provide a large deposit, has made it harder for younger people to step onto the property ladder. Buyers take longer to save the required funds, and people want to feel as though they are ready to step on to the property ladder.
However, information contained in the English Housing Survey, issued by the Government, offers hope for younger people looking to step on to the property ladder. The proportion of 25 to 34-year olds who own their own house has increased. This is the first time in more than ten years. Studies suggest there is now as many owner-occupiers as there are private-renters for this age group.
In the 2018-19 period, 41% of people aged between 25 and 34 lived in the private rental sector, and this is the same figure as are owner-occupiers.
People want to buy property
This outcome reverses the trend which has been recorded since 2003-04. Back then, the proportion of 25 to 34-year olds in owner-occupation was 59%. By 2013-14, this had fallen to 36%.
Housing Secretary Robert Jenrick spoke about the figures, saying; “We’re doing everything we can to make the dream of home ownership a reality for more people, and it’s great to see this is happening for more young people who have taken that first step onto the housing ladder. We’re continuing to work to improve standards in the private rented sector, making buying a home more affordable and building homes fit for the future.”
Of course, while it is positive to see people stepping onto the property ladder at a younger age, this has an impact elsewhere. The proportion of people aged between 25 and 34 in the private rented sector, has fallen from 48% in 2013-14, to the 41% level in 2018-19. The report also indicates overcrowding has doubled in the past two decades in the private rental sector, with this being at a record high in the social housing market.
Tenants are staying longer in rental property
The average length of time a tenant in the private rental sector stays in their current rental property has increased. In 2017-18, it was 4.1 years, but for 2018-19, it had risen to 4.4 years. This is the highest average for tenants in the past decade.
John Stewart is the Policy Manager of the Residential Landlords Association, and he said; “The vast majority of landlords who do a good job welcome good tenants staying in their properties long-term and today’s figures bear this out. They clearly refute the picture some create that landlords spend all their time looking for ways to evict their tenants and it is time to end this scaremongering.”
John continued by saying; “The market is meeting the ever-changing demands on it without the need for legislation. It is vital that the government continues to support and encourage this with pro-growth policies that support good landlords to provide the long-term homes to rent to meet ever growing demand.”
If you plan on making a move in 2020, be sure to contact Bond Oxborough Phillips for help. We are pleased to say we are highly experienced in the local rental and property market, and we look forward to helping you. Contact us today to arrange an appointment.