As little as ten years ago, the word “home” meant something entirely different to what it does today. A place where people stayed for generations, raising their families and being involved in the wider community, once a home was an investment designed to create memories that would bring joy for many years. However today, a home is a temporary pit stop for millions, as they battle to afford somewhere to lay their head for years and call their own.
The struggle to get onto the property ladder has been well documented. However up until the last few years, news stories have focused on the young. 20-somethings just starting to make their way in the world have seemingly been the ones battling steep rents and lower paid jobs. As house prices have crept up since the recession, while salaries have seemingly stayed at the same level, those 20-somethings struggling back then have now turned into 30-somethings, still stuck in the renting trap. Those just starting out are finding it harder still to save a deposit as the gap between income and rent shrinks. In fact, it’s estimated that millennials will spend £44,000 more on rent than the baby boomer generation by the time they turn 30.
The south has been under scrutiny for many years for creating what we now know as the ‘renting trap’. London’s uncontrollable house prices have been the driving force, while areas such as Kent, Surrey and Middlesex have felt the ripple effect. This has pushed up prices in the counties as people moved away from the capital in search of more for their money while still being in commuting distance. In fact, all areas within an hour of London have seen their prices rocket as a result of London workers moving away from the city. Consequently, the South East of England now boasts average prices of £344,098, while the South West is slightly cheaper, averaging £257,427. Both of these fall short of London’s average of £594,857, yet are still out of reach for many.
As would-be homeowners have been priced out of first London, and then the south’s property, there has been an exodus from the bright lights of London in search of more reasonable housing. Heading to vibrant cities such as Birmingham, Manchester, Nottingham and Liverpool, those looking to get on the property ladder anywhere have found that homes are infinitely cheaper, with salaries not much lower than in the south.
As good as this is for first time buyers, it does mean that property is starting to increase in the UK’s largest cities as demand heightens. Resulting in rising rents and higher house prices, this is echoing the effects of London and pricing a whole new generation out of buying all over the country. Add that to the shortage of houses, and ‘generation rent’ is looking at a somewhat bleak future.
If you’re looking to move, browse our houses available online – we help our customers to save money on the cost of selling and renting a property, leading to better deals for buyers and tenants.
