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Latest English Housing Survey shows there are fewer first time buyers and they are older
The age of first time buyers in England has increased over the past 20 years, up from 30 to 33, according to the latest English Housing Survey published by the Government. In 2014/2015 the majority of first time buyers, some 61%, were aged 25 to 34 and this was similar to 1994/1995 but between 1994/1995 and 2014/2015 the proportion of first time buyers aged 16 to 24 fell from 23% to 10%, while the proportion aged 35 to 44 increased from 11% to 20%. The survey, from the Department of Communities and Local Government (DCLG) also shows that more first time buyer households were couples than single people, compared with 20 years ago. The proportion of first time buyers that were single households halved from 29% in 1994/1995 to 14% in 2014/2015 meaning 80% of all first time buyers were couple households, a marked change since 1994/1995 when it was 63% and 2004/2005 when it was 62%. The report suggests that this may be due to an increasing need for two incomes to be able to buy. The analysis shows that among first time buyers that were couples, those with dependent children have increased the most from 20% to 31% and first time buyers had higher incomes and more help with funding their deposits than was required 20 years earlier. Some 72% of first time buyers were in the fourth and fifth quintile income bands in 2014/2015, up from 62% in 1994/1995 and there was an increase in the proportion of first time buyers that had help from friends and family from 21% to 27% while those that used inherited money for their deposit increased by 3% to 10%. Expectation to buy declined among private renters between 2013/2014 and 2014/2015, after a period of relative stability since 2006/2007. A breakdown of the figures show that in 2014/2015 some 57% of private renters were more likely to expect to buy property at some point in the future than social renters at 24%. Since 2006/2007 the proportion of private renters who expect to buy a home has remained relatively consistent. However, there was a decline from 61% in 2013/2014 to 57% in 2014/2015. There was no such decline in the proportion of social renters who expected to buy over the latest year. This was in large part due to the fall in the proportion of 25 to 44 year old private renters who expect to buy in the latest year. Expectation to buy for 25 to 34 year olds in the private rented sector was relatively stable from 2008/2009 but the 71% of 25 to 34 year olds expecting to buy their own property in 2014/2015 signified a decrease from 78% in 2013/2014. A similar pattern was evident among private renters aged 35 to 44 years, with a decline from 68% to 60% in the latest year. There were more older social and private renters expecting to buy than in 2010/2011. Among social… Continue reading
Home sales down by 0.9% in Canada in June but prices up over 11% year on year
Nationally home sales fell 0.9% from May to June in Canada while prices were up 11.2% year on year, according to the latest index data. It means that monthly falls in sales activity has left transactions down 2.6% below the record set in April 2016, the home index from the Canadian Real Estate Association of Canada (CREA) also shows. There is also considerable price differences depending on location. For example if Greater Toronto and Greater Vancouver are left out of the equation prices are up 8.4% year on year. Sales activity was down from the previous month in about half of all markets in June, with declines in Greater Vancouver, the Fraser Valley and Greater Toronto having eclipsed gains in comparatively less active housing markets. ‘While national sales activity remains strong, there are still significant differences in housing market trends across Canada,’ said CREA President Cliff Iverson. ‘While home sales activity and price growth are running strong in B.C. and Ontario, they remain subdued in other markets where home buyers are cautious and uncertain about the outlook for their local economy,’ he added. A breakdown of the figures show that two storey single family home prices continued to post the biggest year on year gain at 15.5%, followed by one storey single family homes up 14%, townhouse/row units up 13.6% and apartments up 9.8%. While prices in nine of the 11 markets tracked by the index posted year on year gains in June, price growth continues to vary widely among housing markets. Greater Vancouver with price growth of 32.1% and the Fraser Valley up 35.5% posted the largest annual gains. Greater Toronto recorded price growth of 16%, Victoria was up 15.7%, up 10.6% in Vancouver Island, up 7.9% in Greater Moncton, up 4.1% in Calgary, up 3.6% in Regina, up 1.9% in Greater Montreal and up 1% in Ottawa but prices fell by 4.1% in Calgary year on year and by 1.4% Saskatoon. The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. The actual, not seasonally adjusted, national average price for homes sold in June 2016 was $503,301, up 11.2% year on year. However, if these two housing markets are excluded from calculations, the average price is a more modest $374,760 and the gain is trimmed to 8.4% year on year. June sales extended trends observed the previous month, according to Gregory Klump, CREA’s chief economist. ‘As was the case in May, the monthly decline in national sales activity was led by the Lower Mainland of British Columbia and markets in or around the GTA,’ he said. ‘In keeping with the law of supply and demand, exceptionally low inventory combined with high demand continues to translate into strong price growth in these housing markets, where year on year price gains have been running in double digit territory since late last year,’ he pointed out. Actual,… Continue reading
Private rented sector in UK seeing rapid growth, new tenant survey reveals
The private rented sector is continuing its rapid growth across the UK and is now well established as the second biggest form of tenure after home ownership, new research shows. It has overtaken the social rented sector and large scale investment into the private rented sector (PRS) by funds and other institutions is set to treble over the next five years boosting growth further, according to the new tenant survey from real estate firm Knight Frank. The Tenant Survey carried out by YouGov on behalf of Knight Frank estimating that total investment will rise to £50 billion over the next five years and large scale investors are operating an average gross to net yield of 26% for new Build to Rent developments. It also shows that some 53% of tenants favour a six month or one year tenancy for rented accommodation and 52% said living close to work or their place of study is a key priority while 30% said the main reason for moving between rented properties was to ‘upgrade’ to a nicer or larger property. The survey found that 38% of tenants have lived in five or more rental properties and while the majority of respondents had moved within a mile of their previous property, some 19% had moved more than 60 miles, indicating a relocation for work or study, highlighting the flexibility of PRS as a tenure. Some 24% of Londoners are prepared to pay 50% as a maximum amount of their gross annual income on rent, up from 22% last year and a quarter of those living in the PRS do not want to, or don’t know if they want to buy a home in the future. Of those that express a desire to eventually buy a home using a mortgage, less than half are currently saving towards a deposit. Also, a quarter of those living in the private rented sector live alone, while 34% live in a couple without children. Some 43% of 18 to 24 years olds share with other adults in a flat share. Grainne Gilmore, head of UK residential research at Knight Frank, pointed out that the private rented sector is continuing to grow in size, with around 5.4 million, or 20% of households now being let out to private tenants. ‘There has been a generational shift in the private rented sector. More households are now living in rented accommodation for longer, and while housing affordability is certainly a factor here, rented accommodation is also becoming an established flexible form of tenure, an attribute welcomed especially among younger workers,’ she explained. Indeed, this was confirmed in last year’s Tenant Survey, with 38% of under 35s saying they didn’t want a mortgage or that renting suited their lifestyle, rising to 49% for those aged under 25. The number of under 45s living in the sector has more than doubled, to nearly 3.1 million over the last decade, and those aged 25 to 34… Continue reading
