Home ownership dropping is an opportunity for buy to let landlords
Research published at the start of this month has shown that home ownership has dropped sharply since the early part of the 21st century. West Yorkshire, for example, has seen a double digit fall where those owning homes is down from more than 70% in 2003 to just 60% today.
Alongside, the West Midlands, Outer London and Greater Manchester, West Yorkshire is one of the worst affected areas. When looking to explain the reasons behind such a staggering drop, Matthew Whittaker, chief economist from the Resolution Foundation, told the BBC: "What we particularly have seen since 2002-03 is that incomes simply haven't kept pace with house prices, so it's not just that house prices have gone up.
“We have this sense now that house prices have become detached from people's earnings ... and we no longer have the route through 100% mortgages and the like for getting on to the housing ladder."
The think tank’s studies showed that the average first time buyer today will pay £150,000 for a home, up from less than £30,000 during the 1980s. In total, buying numbers have fallen a third over the last decade and their data showed an ever-rising reliance on ‘the bank of mum and dad’.
Across England, ownership is now under 64%, with similar stories in Northern Ireland and Scotland - although Wales has only dropped from 75% to 70%. The Foundation said it is “a big problem across the North of England”.
They call the market unfriendly, but there has also been a shift in culture and way of life across the United Kingdom that may be a large part of the reason for this shift. And, in Yorkshire, we have some of the most affordable places to rent (and buy) - with Selby being listed in a recent BBC article.
Our property investments accounts manager Ashley Mehr believes that this presents an opportunity for buy to let investors in the country. He said: "With more people renting, the door is open for different types of landlord to utilise the market. Our company vision is to help landlords whether they own single properties or multi-portfolio. Effectively we want to help them develop their own strategy and meet their property investment goals."
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