As another marker in the decline of home ownership in the UK, the property rental market has been so active that it could surpass sales for the first time in eight decades.
House sales are reported to have tapered off since the June referendum on Brexit with many owners having withdrawn their homes from the market as a result. The number of houses for sales has dipped close to a record low.
This low supply coupled with rising prices has presented increased difficulty to potential buyers to find affordable homes. This has pumped up the rental market.
"As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold," according to Johnny Morris at Countrywide, the UK's biggest estate agency chain.
By the beginning of this year, the level of homeownership fell to its lowest rate in 30 years even though the banks are granting mortgages and despite a mini-boom as buyers rushed to beat a March deadline for an increase in stamp duty charges.
Since then, an increase has occurred in the number of rental properties advertised.
Meanwhile the property website Rightmove said that house sales were most active in the north of England which it described as a "sellers' market" with little room to negotiate on price due to the limited number of houses for sale.
The average asking price in England and Wales now is £309,122, according to the website. This is £1,349 below the record set in June.
The average asking price in Greater London was £645,833 in October, compared with £630,974 in September and a similar figure a year ago.
Comments
Interesting observation. You might also find home ownership is not with in the reach of most working class
people due to the governments idea of affordable housing being out of reach.