The amount of Brits owning a home has dropped considerably over the last few years with numbers slipping from mid-70% down to 62%. Experts believe that this figure could fall even lower despite the government’s recent push to boost homeownership.
High property prices have meant that owning a home is out of the reach of many Brits. Help to Buy schemes will make buying a property easier for some however, rising prices will still price many people out of the market.
Property experts believe that the amount of young people who will opt to rent or simply will not be able to afford to buy will increase over the next 16 years. This could prove to be profitable for those who own UK residential property investments.
Figures from the Town and Country Planning Association reveal that around 200,000 homes are built per year. This number accounts for a mere 54% of the new homes needed in the UK to keep up with demand.
Falling homeownership numbers has enabled developers and landlords to take advantage of the rising number of people in need of rental property.
A report from Countrywide showed that almost 3 million properties have been added to the UK’s rental market over the last 10 years. The report shows that this number could continue to rise in order to keep up with demand.
Changes to Stamp Duty taxes on second homes and buy-to-let property may deter some investors however, property experts at Experience Invest believe that real estate will still appeal to investors in the long-term.
“Although the higher rate of stamp duty may put some investors off, property will still offer higher returns than many investment options and will remain popular. New changes may be “the end of BTL as we know it” however, money can be and will still be made from the market,” Jerald Solis of Experience Invest commented.
The UK requires new build homes for those who wish to buy and a continued supply of good quality rental property for those who prefer the freedom of renting. Experts believe than an increase in supply may ease the housing crisis however, homeownership levels could continue to decline if property prices remain high.