Yesterday we reported how it is currently taking young people an average of ten years to save up for a deposit in order to buy their own property, and up to twenty four years for those that want to move into London. However, now there have been reports that the UK housing market may actually be improving, as the Council of Mortgage Lenders (CML) have said that the amount of first time buyers has actually increased in the last year.
At the same time, the Office for National Statistics has also reported that the housing market is improving, and that last year house prices increased by 3.3 per cent. Furthermore, the Royal Institution of Chartered Surveyors found that property sales have now increase for the fourth month in a row in January, meaning that all signs are pointing towards the worst of the housing market crisis to be coming to an end.
Discussing the statistics, Peter Bolton from the Royal Institution of Chartered Surveyors said: “It is interesting to see that the amount of completed transactions are on the rise, as confidence returns to the market place. While it is still very early days to talk about a comprehensive market recovery, activity levels are still encouraging and there is some optimism out there that things could continue to improve.”
“That said, in many parts of the UK – such as London and the South East – high house prices and the lofty deposits required by many lenders continue to prevent may first-time buyers from getting a foot on the ladder, which is preventing any significant movement at the lower end of the market.” Private rented sector landlords could use this new information to their advantage, especially if they are planning on investing in more properties to add to their portfolios.
It is important for landlords to consider how the housing market could affect their business, especially if there is soon less demand for private rented accommodation. It is important for landlords to invest in landlord insurance that includes an unoccupied property policy that can help with mortgage payments should any houses in their portfolio become unoccupied for a substantial period of time.