Tag Archives: children
UK housing trends survey finds more people living alone and renting
The housing market in the UK is experiencing a number of key trend changes which mean the more people are living along and more are renting a home for the long term, new research has found. Of the 43% of those taking part in the Housing Futures Survey by Strutt & Parker who are single and planning to move in the next five years, some 75% expect to be living along and 45% of those aged 18 to 29 indicated they would consider living in a professionally managed private rental unit. The research suggests that future housing types and location decisions are being altered by access to technology. Nearly 36% of the respondents who were intending to move listed broadband connectivity as important or very important in their motivations for moving, and nearly 20% listed mobile coverage. It also suggests that alternative family structures are becoming more common, with 15% of respondents who intend to move anticipating living with more than one generation under the same roof compared with 10% in the previous survey. There is little sign of home owners planning to raise capital for pensions and their children’s housing needs by selling their property. Only 9% of those aged 40 to 59, and 0.4% of those aged 60 or older, rated financial support for children or relatives as important or very important when asked about motivations for moving, and 8% and 16% respectively for pension support or top-up. ‘The trends identify that single occupied households and alternative family households are growing, the younger generation is more open to the idea of renting and those moving into retirement are seeking more interactive environments. The impact of these trends inevitably means that in the future the homes we plan, design, build and live in must be different,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘Lifestyle change remained the dominant motivation for moving, but in light of pension challenges and parents seeking to help their children onto the housing ladder, we were surprised to see that so few respondents ranked release of equity, pension top up and financial support for relatives as their reasons for moving home,’ she added. Continue reading
Pension changes could boost buy to let in UK
Pension regulation changes in the UK could boost the buy to let market as so called silver landlords decide to invest in the sector, it is claimed. Some 32% of people aged 45 to 64 with a pension would consider using some or all of their pension pot to fund a buy to let property as an alternative to a more traditional pension fund, according to research by Direct Line for Business (DL4B). It highlights that the number of 'silver landlords' could increase significantly given the changes in pension regulation which mean that from April 2015, people approaching retirement and pensioners will be able to access as much or as little as they want from their pension pots. Buy to let is becoming an attractive option for people, especially while property and rents rise, according to property lettings expert, Kate Faulkner, as it can deliver some great returns over 15 to 20 years. ‘Given the recent pension liberation announcement, for some it could be good to diversify their investments when approaching retirement, but landlords need to seek financial/expert advice and ensure they understand the returns that property can deliver and especially the tax implications,’ she said. As property and rental prices continue to rise, buy to let can provide a regular income flow while also offering the opportunity for capital appreciation. The research shows that 43% of potential 'silver landlords' would consider it on the basis that it produces regular income. Some 23% are attracted by the perceived security of the investment, 17% by the expected capital appreciation and 9% of potential buy to let investors favour the investment because they would like to invest in something that will allow them to leave an inheritance to their children. The research highlighted the perceived high returns available for landlords as those approaching retirement anticipate an average (median) yield of between 10% and 14% on their investment. ‘Buy to let can be a flexible investment, providing an immediate source of income as well as being a long term asset. As such, it is understandable that people approaching retirement age are considering investing their pension pots in property,’ said Jazz Gakhal, head of Direct Line for Business. ‘However, prospective landlords should understand that buy to let does not come without financial risk. Legal expenses for repossessions and potential damage to property are but just a few of the costs that can take significant chunks out of landlords' annual yield,’ he pointed out. ‘Taking the necessary precautions such as carrying out full reference checks on prospective tenants, inspecting your rental property regularly, and taking out landlord insurance can help to minimise some of the risks faced by landlords,’ he added. Continue reading
Almost half of UK property owners have homes too big for their needs, research sugg
Across the UK, 47% of privately owned households are Tumbleweeders who occupy homes that are too large for their needs, according to new research. In its Housing Futures report, national estate agent Strutt & Parker defines a Tumbleweeder as those who have two or more bedrooms than required for the number of people living in their home and a couple is defined as needing one bedroom. The research shows that under-occupation becomes greater in the peripheral areas of the UK. The five most under-occupied areas in the UK are Rutland in the East Midlands where 63% of residents are Tumbleweeders, Eilean Siar in Scotland at 60%, Monmouthshire in Wales at 59%, The Cotswolds also at 59% and the Orkney Islands in Scotland at 58%. On the whole cities have lower under-occupation. The five least under-occupied areas in the UK are all in central London except Glasgow City where only 19% of residents are Tumbleweeders. City of London is the lowest at 13%, followed by Tower Hamlets at 17%, Westminster at 24% and Hackney at 25%. ‘Lack of supply is often cited as the biggest issue facing the housing industry in the UK. However, these figures clearly show that under-occupation is an equally huge issue,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘The challenge for the industry is to provide suitable solutions to individuals' housing needs. In particular, we need to build more homes that our older generations are prepared to downsize into. As a nation of low supply and high demand, we would rather have all homes occupied efficiently where possible,’ she explained. ‘In reality, Tumbleweeders have the potential to be one of the greatest limiters of supply and, while being discussed in the social housing arena, their impact upon the wider housing market is not currently being addressed,’ she added. But she also pointed out that there are very valid reasons for being a Tumbleweeder, such as those who work in a city and spend weekends in another location may have homes for both. Likewise, empty nesters who have not downsized since their children left home, or indeed families who in the past have had ageing parents living with them may find they now have a house much larger than they really need. Tumbleweeders could also be those with part time families which are increasingly common in the modern age, for example parents whose children only stay with them at the weekends. According to research by Grainger, 41% of households will be occupied by one person by 2033, and three quarters will have no dependent children. Due to our ageing population, 3.8 million older people already live alone in the UK and 70% of these are women. Continue reading
