The good old days of the 1970’s and 1980’s eh … with such highlights
lowlights as 24% inflation, 17% interest rates, 3 day working week, 13%
unemployment, power cuts ... those were the days (not)… but at least people
could afford to buy their own home. So why aren’t the 20 and 30 something’s
buying in the same numbers as they were 30 or 40 years ago?
Many people blame the credit crunch and global recession of
2008, which had an enormous impact on the Maidstone (and UK) housing market. Predominantly,
the 20 something first-time buyers who, confronting a problematic mortgage
market, the perceived need for big deposits, reduced job security and declining
disposable income, discovered it challenging to assemble the monetary means to
get on to the Maidstone property ladder.
However, I would say there has been something else at play
other than the issue of raising a deposit - having sufficient income and rising
property prices in Maidstone. Whilst these are important factors and barriers
to homeownership, I also believe there has been a generational change in
attitudes towards home ownership in Maidstone (and in fact the rest of the
Country).
Back in 2011, the Halifax did a survey of thousands of
tenants and 19% of tenants said they had no plans to buy a home for themselves.
A recent, almost identical survey of tenants, carried out by The Deposit
Protection Service revealed, in late 2016, that figure had risen to 38.4%, with
many no-longer equating home ownership to success and believing renting to be
better suited to their lifestyle.
You see, I believe renting is a fundamental part of the
housing sector, and a meaningful proportion of the younger adult members of the
Maidstone population choose to be tenants as it better suits their plans and
lifestyle. Local Government in Maidstone (including the planners – especially
the planners), land owners and landlords need an adaptable Maidstone residential
property sector that allows the diverse choices of these Maidstone 20 and 30
year olds to be met.
This means, if we applied the same percentages to the
current 16,435 Maidstone tenants in their 7,008 private rental properties, 6,311
tenants have no plans to ever buy a property – good news for the landlords of
those 2,691 properties. Interestingly, in the same report, just under two
thirds (62%) of tenants said they didn’t expect to buy within the next year.
.. but does that mean the other third will be buying in Maidstone
in the next 12 months?
Some will, but most won’t … in fact, the Royal Institution
of Chartered Surveyors (RICS) predicts that, by 2025, that the number of people
renting will increase, not drop. Yes, many tenants might hope to buy but the
reality is different for the reasons set out above. The RICS predicts the number of tenants
looking to rent will increase by 1.8 million households by 2025, as rising
house prices continue to make home ownership increasingly unaffordable for
younger generations. So, if we applied
this rise to Maidstone, we will in fact need an additional 3,003 private rental
properties over the next eight years (or 375 a year) … meaning the number of
private rented properties in Maidstone is projected to rise to an eye watering 10,011
households.
If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.
Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Maidstone Property News.
LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/
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