{"id":6031206,"date":"2020-04-30T13:01:00","date_gmt":"2020-04-30T12:01:00","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6031206"},"modified":"2020-04-30T13:01:00","modified_gmt":"2020-04-30T12:01:00","slug":"renting-homeownership-and-covid-19-savills-looks-at-whats-changed","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/zh-hk\/2020\/04\/30\/renting-homeownership-and-covid-19-savills-looks-at-whats-changed\/","title":{"rendered":"Renting, homeownership and COVID-19: Savills looks at what’s changed"},"content":{"rendered":"
A new report released by Savills explores some interesting trends in the UK housing market. It also reveals the latest predictions across renting and buying.<\/strong><\/p>\n Over the first 15 years of the 2000s, the number of private rented households in England more than doubled. Meanwhile, mortgaged homeowner numbers dropped by around 1.5 million. Homeownership<\/a> stopped being a top priority for young people, with affordability as well as an abundance of rental housing both contributing.<\/p>\n For the past five years, the levels have remained largely the same; homeowners and private rented tenants are closer in number than ever. The Savills report, titled Changing drivers of tenure<\/em><\/a>, looks at the reasons behind this plateau, and what factors may influence future market shifts.<\/p>\n In September 2019, there were around 8.43 million mortgaged<\/a> homeowners in the UK, according to the Labour Force Survey. This is a fall of 1.53 million since 2000, although is a slight rise of 340,000 from 2016.<\/p>\n This is influenced by two major factors: a relatively recent influx of first-time buyers<\/a>, combined with less people at the other end of the scale paying off their mortgages.<\/p>\n According to UK Finance, there has been more than 350,000 first-time buyers per year over the past few years. Back in 2013, this number was below 260,000.<\/p>\n One thing that has changed is the amount of government help available to buyers now. The Help to Buy scheme had been helping an average 40,000 first-time buyers a year onto the housing ladder in England, for example. Lenders had also been offering higher loan-to-value mortgages.<\/p>\n The report points out that the way deposits are funded now compared to 20 years ago has also changed. There’s been a major rise in support from the “bank of Mum and Dad<\/a>“, as well as help from grandparents. For many, this may be the only way of getting onto the housing ladder.<\/p>\n It adds: “In all likelihood this has now become an entrenched means by which people graduate to home ownership. But in the short term, the falls in the stock market and the knock-on impact this may have on older households\u2019 pension provisions may curtail its availability.”<\/p><\/blockquote>\n According to the English Housing Survey, 34.4% of first-time buyers get a family gift or loan towards their deposit. The reason this may be more common now is because the older generations tend to have much more property wealth due to a strongly performing housing market and rising prices<\/a>.<\/p>\n There are now approximately 4.55 million households renting privately in the UK, says the report. This is around double what it was in 2000, despite a fall of around 240,000 since 2016. However, there is one age group<\/a> in particular that stands out in the sector.<\/p>\n “Despite the increase in first-time buyer activity, private renting has continued to increase and mortgaged owner occupation fall in the \u2018lost generation\u2019 of 35-44-year-olds,” says the report.<\/p><\/blockquote>\n This demographic is now more likely than ever to be looking to rent rather than buy, overtaking the traditionally ‘young’ renting population.<\/p>\n Savills has also published a graph, produced by the English Housing Survey, showing how all age groups fit into the bigger rental picture.<\/p>\nMore help for homeowners<\/h4>\n
Bank of Mum and Dad<\/h4>\n
Changes in the private rented sector<\/h4>\n