Buy-to-let investors 'benefit from market growth'
first-time buyers loosing distance on market
New research shows that rising house prices are pricing first-time buyers out of the market and contributing to a trend of people buying later on in life.
Hometrack, the property research specialist, suggests that almost half (49 per cent) of first-time buyers cannot afford to get onto the property ladder.
This is despite the five-year Homes for All policy instigated by the government, which challenged contractors and house builders to build affordable homes for first-time buyers.
Richard Donnell of Hometrack explained that market movements had already altered expectations about home buying.
'The obsession [with owning a property] has been tempered with the reality of pricing,' he said.
Mr Donnell noted that couples were tending to get married later and desired greater financial flexibility than previous generations.
Earlier this month Malcolm Harrison, spokesperson for the Association of Residential Letting Agents, suggested that landlords would be 'joining a buoyant market' if they could afford to purchase another property and that 'tenant demand is definitely growing'.
lettings market 'Hotting Up'
Chartered surveyors are reporting the biggest increase in tenant demand in four and a half years, with 27 per cent reporting a rise in new lets rather than a fall.
The Royal Institution of Chartered Surveyors' (Rics') residential lettings survey for the period between last November and January of this year also claims that rents have steadily been increasing and yields for both flats and houses are above the survey's long term average.
The survey suggests that landlords have become more active in the market which has led to an increase in the amount of properties available. Rics believes that a quarter point cutting of interest rates by the Bank of England's monetary policy committee in August 2005 encouraged investors into the residential market.
Rics claims that a renewed upturn in house prices has pushed potential buyers back into the rental market.
Jeremy Leaf, spokesperson for Rics, said: 'Buy-to-let investors are active once again, which will help dispel fears that an absence in first-time buyers will contribute to a significant slowdown in the wider housing market next year.'
New research shows that rising house prices are pricing first-time buyers out of the market and contributing to a trend of people buying later on in life.
Hometrack, the property research specialist, suggests that almost half (49 per cent) of first-time buyers cannot afford to get onto the property ladder.
This is despite the five-year Homes for All policy instigated by the government, which challenged contractors and house builders to build affordable homes for first-time buyers.
Richard Donnell of Hometrack explained that market movements had already altered expectations about home buying.
'The obsession [with owning a property] has been tempered with the reality of pricing,' he said.
Mr Donnell noted that couples were tending to get married later and desired greater financial flexibility than previous generations.
Earlier this month Malcolm Harrison, spokesperson for the Association of Residential Letting Agents, suggested that landlords would be 'joining a buoyant market' if they could afford to purchase another property and that 'tenant demand is definitely growing'.
lettings market 'Hotting Up'
Chartered surveyors are reporting the biggest increase in tenant demand in four and a half years, with 27 per cent reporting a rise in new lets rather than a fall.
The Royal Institution of Chartered Surveyors' (Rics') residential lettings survey for the period between last November and January of this year also claims that rents have steadily been increasing and yields for both flats and houses are above the survey's long term average.
The survey suggests that landlords have become more active in the market which has led to an increase in the amount of properties available. Rics believes that a quarter point cutting of interest rates by the Bank of England's monetary policy committee in August 2005 encouraged investors into the residential market.
Rics claims that a renewed upturn in house prices has pushed potential buyers back into the rental market.
Jeremy Leaf, spokesperson for Rics, said: 'Buy-to-let investors are active once again, which will help dispel fears that an absence in first-time buyers will contribute to a significant slowdown in the wider housing market next year.'
1 Comments:
I agree, property investment is a increasing obsession. My father is in the property investment business and does most of the work himself. The craze has gone one step further with companies such as Investment Property North who will buy, do up and sell or rent your property for you, all for the initial money and a cut off the profit.
Will we all own multiple homes in the near future? I do hope so.
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