One million households could be 'forced into renting' in property price spiral
Friday 22 November 2013
AN extra million households will be forced into rental
accommodation over the next five years as rising home prices out lock potential buyers out of the property market, new research warned today.
Property consultant Savills said 200,000 more households a year in the private rented sector would also push up the cost of tenancies by 21%, hitting the ability of families to save up for a deposit. The biggest group of private tenants is aged between 25 and 34, but the fastest-growing group are between 35 and 44, a quarter of them having young families.
Many of this “Generation Rent” — earning too much to qualify for state support but too little to get on the housing ladder — will never own their own home, Savills warned.
Around 200,000 potential first-time buyers have been shut out of the property market by the credit crunch since 2009, it estimates.
The estate agent adds that the Government’s Help to Buy scheme would have little impact on these excluded families, as the average income of most of these households is below the £45,000 average of those currently taking part in the initative. Savills meanwhile predicts a 25% rise in house prices over the next five years.
Savills’ Susan Emmett said: “Although the property market is strengthening and mortgage availability is improving, many households are being left behind. The new excluded are unlikely to qualify for social housing yet their incomes are not high enough to take advantage of the market recovery.”
- 1 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
- 3 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
- 4 Nicki Minaj finally releases predictable 'Anaconda' video
- 5 James Foley 'beheading': Met police warn public watching murder video could be criminal offence
James Foley 'beheaded': PM cuts holiday short for emergency meeting on British response to latest Isis atrocity
Michael Brown shooting: Police shoot and kill second young black man near Ferguson
ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
Iraq crisis: Islamic State's message to America - 'We will drown you all in blood'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Scottish Independence Referendum: Salmond described as 'arrogant, ambitious and dishonest' by Scottish women
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again. It would be immoral to bring it into the world'
iJobs Money & Business
£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...
Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...
£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...
£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...