Young people putting property purchases on hold
Conflicting information and figures concerning the property market are not uncommon. Now, new
figures from the Council of Mortgage Lenders (CML) indicate that the desire of Britons to be homeowners is as high as it has ever been, but the likelihood of people jumping onto the property carousel in the near future is diminishing.
Putting off purchases
The Independent reports that around 85 per cent of people interviewed said that they hoped to be living in their own property a decade from now. This represents the highest figure since records began, back in 1975.
However, there has been a drop in the number of people who expect to be living in their own home in the short term. Just 76 per cent of respondents would like to own their own home within two years, compared to 78 per cent in 2007.
‘Lower appetite’ for home ownership amongst younger people
The CML said that the drop in people wanting to own their own home reflected a ‘much lower appetite for home ownership in the near future among younger people’. Only 42 per cent of respondents aged between 18 and 24 replied that they wanted to own their own home within two years. This is despite the fact that the 18-24 age group was the most likely to want to live in their own property in 10 years’ time at 88 per cent.
Rents going up
The CML research coincided with a recent report from LSL Property Services which showed that landlords increased rents in August for the seventh month in a row. The average cost of renting a property in the UK rose to £686 in August 2010, a 1.4 per cent increase on July and the largest increase in almost a year.
The consistent rise in rents is a symptom of more and more people putting off buying a property, which in turn has increased the demand for rental homes.