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Research suggests many young people need help from parents to buy first home
Almost half of parents in Britain whose children haven't bought a home, think the only way they will be able to do so is with inheritance from them new research suggests. Many parents feel high house prices and a lack of affordable homes are leaving their children priced out, according to the report from housing charity Shelter. It says that the latest government figures suggest they are right to be concerned, with home ownership levels having collapsed among young adults in the last decade. With the housing shortage making it much harder for young people to get a foot on the property ladder the Shelter poll shows that of those 25 to 34 year olds who have been able to buy, one in six of them relied on inheritance money from a relative, and nearly a third were gifted money for a deposit. This follows another recent report from Shelter which found that those locked out of homeownership have less stability in their finances and careers. Whilst many are also put off parenthood because they don't have a stable home of their own. Richard is one of those currently priced out. He's 28, and has a good job, but is currently living with his parents in their semi-detached home at the opposite side of London to his workplace. 'Even though I save every penny I have and cut costs wherever I can, it never seems to be enough with today's house prices. I hate the thought that losing the people I love most in the world could be the one chance I'll have to secure my own home,’ he said. Campbell Robb, chief executive of Shelter said no parent wants to think the only way for their children to ever own a home of their own is through losing someone they love. ‘It's a tragic consequence of our housing shortage that, even when they are working hard and saving what they can, a generation of young adults have no choice but to rely on the prospect of inheritance to have any hope of buying their first home,’ he added. He believes that the failure of successive governments to build anywhere near enough affordable homes is leaving millions of young adults facing a lifetime of uncertainty. ‘Politicians should give back hope to the priced out generation by making a real and lasting commitment to building the affordable homes we desperately need,’ he added. Buying a home is simply unaffordable for many first time buyers across England, particularly in London and the south, according to a new report by a housing charity. Shelter research says that first time buyers are being placed under increased financial pressure. Analysing homes listed on property listings website Zoopla across England it found that 16.9%, or 42,185 homes, were affordable and suitable for families earning the median income of £30,748 a year. For single people looking to buy a home, only 7.5% of homes were listed at an affordable price while for… Continue reading
RICS develops policy ideas report for next UK government
With property a key issue for voters ahead of this week’s UK general election, the Royal Institution for Chartered Surveyors (RICS) has developed a series of policy blueprints for new ministers. These Property in Politics recommendations provide workable solutions for the next government to implement as priorities and include establishing an independent Housing Observatory and for the next government to issue Property Tax Forward Guidance within its first 100 days A Housing Observatory would draw on expertise from across government, the private sector and academia, taking politics out of the housing debate and ultimately delivering the housing supply the UK needs. RICS says that the observatory would be strictly independent at arm’s length from government and fulfil several functions including as a data hub on housing, accessible to policymakers, academics and the general public. It would review and interpret this data and produce briefing papers on what works, both nationally and internationally and analyse policy statements, identifying long term consequences and macro trends modelled on the tax and spending policy analysis carried out by the Institute for Fiscal Studies. It would also create or facilitate new streams of research. Property Tax Forward Guidance would promote certainty and clarity for the property sector, according to RICS and it added that the new government should publish Forward Guidance of its plans for property taxes within its first 100 days. It would seek a commitment to a comprehensive review of Council Tax, including moves towards a wholesale revaluation of properties and the introduction of higher rate bands and reduce the VAT on improvements to rental properties to 5% to stimulate investment in the private rented sector. It says that the parties should undertake a detailed assessment of the probable impact of a mansion tax proposed by Labour and the Liberal Democrats. The proposals were developed through in-depth consultations with RICS professionals, and to date over 1,000 people have been engaged on the campaign. ‘To take these ideas forward, we convened a series of working groups in early 2015, to develop clear plans for action on a number of the recommendations; principal among these were the establishment of a Housing Observatory, the issuing of Property Tax Forward Guidance within the first 100 days of the next government, and the delivery of a Resource Revolution in planning departments,’ said a spokesman. ‘Across each of these areas, we engaged with partners and stakeholders from the professions, from academia, and from government. Each panel moved beyond the headline recommendations to give concrete proposals on how each can be realised and their findings have been compiled in a series of policy blueprints for new Ministers,’ the spokesman added. Continue reading
Property prices and rents holding steady in the Gulf region
Residential property prices in Dubai have increased 1.5% year on year, led by villas, with apartment seeing prices grow at a slower rate, according to the latest index. Apartment prices increased by just 0.8% compared with a year ago in March but increased 1.74% month on month, the data from ReidIn shows. Villa prices were up 4.5% year on year but month on month fell by 0.24%. The data also shows that rental prices fell by 0.29% but have increased 5.4% year on year. A breakdown of the figures shows that apartment rents decreased 0.2% on a monthly basis but are up 6.3% year on year. Villa rents have been much more stable in the last 12 months, up by 1% year on year and down by 0.25% month on month. Meanwhile, in neighbouring Abu Dhabi prices fell by of 0.48% in March 2015 but were up 0.4% compared to March 2014. Apartment prices were down 0.60% month on month and decreased 1.8% year on year while villa prices fell 0.4& compared to February but increased 0.9% year on year. In the rental market prices fell 0.75% in March but are still up 2% compared to March 2014. Apartment rents were down 0.45% month on month and down 2.6% year on year while villa rents fell 1.04% month on month but are up 4.7% year on year. Elsewhere in the Gulf region the Saudi Arabian market has seen variable real estate performance. Over the past year, residential prices in Riyadh have risen by 5% to 7% overall but there have been variable performances across the capital’s districts, according to the latest report from international real estate firm Knight Frank. It says that congestion issues in the south, for example, have resulted in prices stagnating while in the north, which has seen notable development activity, prices have increased by around 9%. ‘In the short to medium term, with new supply unlikely to be able to fully offset pent-up demand, we expect residential prices to continue to move in an upward direction,’ said Stefan Burch, Knight Frank partner for Saudi Arabia advisory services. The report points out that in recent year Saudi Arabia’s residential construction sector has been expanding rapidly. Indeed, the latest available data shows that the value of residential building construction across the kingdom rose for the ninth consecutive year in 2012, increasing by 11.4% year on year to SAR95.6 billion. ‘Not surprisingly, Riyadh is an important driver of construction activity in Saudi Arabia. The capital accounted for an average of 27% of all residential and commercial permits issued across the kingdom between 2003 and 2013. Moreover, the number of permits issued in the capital rose by 319% over the 10 year period, outperforming Saudi Arabia as a whole, which experienced a 215% increase,’ explained Burch. Despite rising development activity however, demand for residential units continues to outstrip supply in Riyadh. Indeed, the capital has a requirement for around 50,000 housing units per annum… Continue reading
