It is reported that many first time buyers who buy a property in 2016 will have already spend over £50,000 on rent according to research for a landlords trade body. This amount could increase to over £60,000 for those starting out renting now by the time they get a home of their own according to the ARLA.
It does not get any better for would be first time home buyers when you factor in rising house prices which will mean higher deposits and greater income to tick all the boxes to get a mortgage.
Demand for properties and short supply of stock in some parts of the country is pushing prices up, along with second home buyers keen to buy before the stamp duty land tax increase in April 2016
The London and Cambridge rental market is now reported to be getting alarming unaffordable with far more prospective tenants then property currently available creating supply and demand and increasing prices.
What Next for First Time Buyers
Help to buy has offered hope for some but reliant on mortgage applicants with a good credit history and income. Shared ownership is another option but lack of new build properties on these schemes is only helping the few lucky enough to secure a property.
Rent to buy from the private sector will tick more potential buyers boxes without the need to apply for a mortgage to get the keys, and time to get your financial house in order prior to applying for a mortgage in 2 to 5 years. Like shared ownership a shortage of properties is the stumbling block and need to listen out for potential opportunities.
House prices are reported to have increase by over 7% on the 12 months up until November 2015.
The average house price in the UK is now around £288,000 up 7.7% in one year but wages have only grown 2.4%. This strong momentum in the property market could be down to a shortage of properties available and supply and demand creating this surge in prices.
The losers are those trying to get a foot on the property ladder and often now referred to as generation rent, the 20 to 39 age group finding it increasingly tough to get on the housing ladder especially in London and the south east seeing the highest property prices that requires the largest deposit and income to try and arrange a mortgage.
Most Expensive Road to Buy a House
Victoria Road in Kensington, London is reported to be the most expensive street in England and Wales, with the average property costing over 8 million.
Close to Kensington Palace and the Albert Hall the average property in Victoria Road costs £8,006,000 according to research from leading high street bank.
Kensington and Chelsea offers a glamorous lifestyle attracting many overseas buyers, and is home to twelve of the twenty most expensive streets.