Amazing though it may seem, the Millennial Generation in London will have to wait, typically, 59 years before they have enough money saved to buy a house.
According to new findings from Studio B, created by banks in Yorkshire and Clydesdale to assess the banking concerns of the future, it decided that the 59 year figure was sound, and that was just to save up 25% to put money down. It might be true that there may be a shorter wait if buying outside of London, but it will still not be a cakewalk.
While the government is supposed to be making plans to help first-time home seekers, it will take a very long time to be a homeowner. Just to get into a rental unit in lieu of owning can be a hardship, too, with having to come up with security deposit, a month’s rent and maybe a fee to a letting representative.
Not only that but rents likely go up each year, with a Royal Institution of Chartered Surveyors (RICS) survey of people who know about property indicating rents would go up by more than 20% spread across the upcoming five year period.
Then there are the repairs, and the lack of certainty whether or not your landlord will renew your lease.
In fairness, the government appears to be taking some of these issues head on. In April, 2017, for example, banning unfair letting agency fees has begun. The charity, Shelter, recently reported that there are one in four individuals in Wales and England that were assessed such fees. One in seven tenants pays more than £500.
Fees for letting agents charging additional fees for renewing their tenancy have already been banned in Scotland with Northern Ireland and Wales are on deck. England is considering a similar measure.
It’s expected that this will raise competition in the rental field, thereby making landlords shop for more competitive charges in services for which they need.
The government is going after amendments to planning regulations so area councils can work toward more “build to rent” housing; working on affordable housing goals with builders; and putting together a greater number of “family friendly” agreements in the private sector.