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CORONAVIRUS UPDATE

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TODAY'S OTHER NEWS

Corona Fallout: Renters admit they’re less likely to own a home now

Research by insurance firm Aviva suggests private tenants are now more pessimistic about being able to buy their own home.

In December, six months ago, the firm found that 68 per cent of non homeowners hoped to buy a property in future: now that figures is just 52 per cent. 

In line with this, the number of under-25s hoping to get on the property ladder in the next five years has decreased from 35 per cent in December to 27 per cent today. 

The number of households - renting and owning - looking to trade up to a bigger property has also fallen from 10 to eight per cent, suggesting the current housing market is causing people to put plans on hold.

The Aviva study also reveals that lockdown has accelerated the way people use online services and video technology. 

Prior to the Covid-19 outbreak, 30 per cent of UK residents aged 55+ used video calls. This has now risen to 38 per cent of this age group.

The number of internet-enabled devices per UK household has increased from 10.3 in December to 11.6 now.

An Aviva spokesman says: “As the lockdown begins to ease, its legacy is likely to continue as new behaviours become the norm. If people make significant changes at home - whether this means buying new technology, making substantial property improvements, or even changing one’s living arrangements – it’s important that people keep their home insurer informed so they have the appropriate cover in place.”

  • Peter Hendry

    Unless???
    We’re championing a way for renters to retain the dream of becoming owners in their own right.

    It is to reform the house-buying system to accord with buyers’ affordability instead of mere seller’s aspirations.
    For more, search for House Price Virtuoso Solution and the whole concept will be revealed.

    The secondary outcome from this proposal is that house prices themselves can be trimmed more to prevailing market levels, resulting in more house sales across the board - a welcome result for all agents; one would think.

  • Paul Barrett

    Many sellers will refuse to sell at current market levels.
    A property is only worth what someone is prepared to pay for it.

    Currently there are few who are prepared to go through the boredom of saving for a deposit.
    Spend it all is the attitude of feckless tenants.

    Plus they refuse to accept they can't afford to be near mummy and daddy.

    There are plenty of affordable properties just not where these aspirant homebuyers wish to be.

    So they have to rent from LL who did bother saving for what are usually substantial deposits.

    Invariably in a declining market lenders require even larger deposits unless the seller can be persuaded to reduce the price.

    Many LL like me aren't prepared to do this.
    So we carry on letting as there is still plenty of tenant demand.
    When property prices have rebounded which they will in about a year LL can sell off.

    Only extremely distressed LL will need to sell off.

    With tenant demand still high even they may not have to sell currently.

    It will be interesting to see whether all the sacked workers vacate their rental properties and return to their childhood bedrooms with mummy and daddy!!


    Govt would save fortunes in HB if this occurred.
    Few LL will be prepared to retain tenants who can only afford LHA rates.
    LL will invariably evict if tenants refuse to vacate.

    It is gonna be a very turbulent next few years.

    I believe there will inevitably be a substantial contraction in tenant demand as they all return to parental homes.
    The economy can't support the current numbers of tenants.
    Until CV19 came along the economy was doing great.
    People were employed etc.
    They could afford to rent.
    That has all changed in a matter of months.
    For those LL willing to invest in LHA letting they will make good money as there will be massive demand for such lettings.
    Trouble is very few LL are prepared to let to DSS tenants for all the obvious reasons

    It will be interesting to see whether LL are prepared to accept massive reductions in rent so that DSS tenants can afford to stay and rent where they have been.

    Can't see that happening myself.
    If that was the case for me that would halve the current market rate I'm charging.

    I'd rather keep a property empty than take on DSS.

    There are plenty of lodgers out there far better than tenants.
    DSS families will struggle to source LL prepared to take them on.
    They simply aren't needed.
    There are more than sufficient normal tenants to be able to avoid DSS ones.
    House prices are going nowhere.
    They will be static for years.

  • S l
    • S l
    • 28 May 2020 16:26 PM

    smart LL wont take in DSS due to the current ruling that the council can rake back the rental money anytime no time limit if they decided that the person had defraud the housing benefit plus the renter may obtain the housing benefit but not pay rent. So its a lose lose situation. Whether covid or not, there are plenty of rogue tenants not paying rent even though they got a job and covid only make more tenants default with reason although they are still spending like hell. If you had bother to check the profits by those shops that are open during the covid pandemic, they are making triple profits or more. Why? The mentality is that if you spend it all and show no money in account, you are more likely to get benefits especially if you got children. So no incentive at all to be frugal. The more the govt fork out to help on that basis, the less people are going to be sensible and move back home!

  • Paul Barrett

    Yep the dysfunctional welfare system certainly makes being feckless worthwhile.
    Only very stupid people would bother having savings in an account that can be discovered by the DWP.
    Cash can never be detected by the DWP.

    Welfare claimants can achieve a rather nice lifestyle.
    They are in the upper 25% of income earners in the UK.

    There is no doubt that the OBC encourages fecklessness.
    Even more galling is the OBC doesn't even include Council Tax Support within the calculation.
    So if not bothering to work at all that could be £23000 of net income.
    You would need a job paying about £30000 to be in exactly the same position as a welfare scrounger.

    No wonder work doesn't pay.
    The welfare scroungers can even avoid the OBC by allegedly working 16 hrs pw.
    So UNLIMITED welfare.
    The welfare bill will massively increase to levels never seen before.
    It remains to be seen whether LL will take on these welfare scroungers if they are the only tenants available.

    Personally I would just convert to lodgers irrespective of what any BTL mortgage conditions were.

    After all millions of properties have been let fraudulently on AirBnB.
    Having lodgers is far less fraudulent than AirBnB.

    No idea what the DSS lodger rates are like but it avoids the eviction problems if the lodger stops paying rent for WHATEVER reason.


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