Is the UK turning into a rental economy?
Despite the fact that the first choice for many in the UK property market is to buy a property for the future, there are now signs that more and more people are looking to rent in the short to medium term. The Chartered Institute of Housing has today issued a report suggesting that those on incomes between £12,000 and £25,000 are stuck in between being eligible for social housing and been able to afford their own property.
In what has the potential to become a self-fulfilling prophecy, the fewer people who can afford to acquire their own property the more pressure this will place on the rental market and the more properties will come under the "buy to let" banner. This is despite the fact that many buy-to-let participants have fallen by the wayside after the credit crunch and the worldwide recession. However, there is also the UK phenomenon of a housing shortage which has been ongoing for decades and many people believe is one of the reasons why UK property is so expensive.
Despite the fact that the UK government recently announced a number of incentives for local authorities to build affordable housing this will take some time to kick in and more and more people will be forced to look at renting property before acquiring their own property in years to come.
House Prices rise for fifth consecutive Month
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Steepest fall in house prices for 18 years
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OFT looks to open up the estate agency market
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Government buy to let register is unworkable
The National Landlords Association has today come out in favour of regulation of the buy to let market but firmly against plans by the UK government to introduce a buy to let register. Despite the fact that the UK government had initially indicated a "light touch regulatory regime" the move to ensure that each and every property which is rented in the UK is added to the register could cause signif...Read More