At Just Lets Peterborough, we know the rental and property market are closely linked. If people find themselves priced out of the property market, it is likely there will be a greater demand for rental property.
This is the findings of a new study, and this means there might be an opportunity for landlords. If you are a Peterborough landlord looking for guidance in the market, please get in touch, and we will be more than happy to assist you.
First-time buyers surprised by hidden costs
A new survey, by Urban Jungle, highlights the challenges first-time buyers have in stepping onto the property ladder, and this might lead to greater demand for rental property.
The report claims 80% of people aged between 18 and 35 are trying to raise money for a deposit in the next five years.
27% of respondents said they save as much as they did before the pandemic. The people in this group should be okay, as they are no worse off than what they were before. However, this also leaves 73% of the population who aren’t saving as much as they did before. Even allowing for some people actually saving more now, there is a strong likelihood many would-be buyers ability to save money has decreased in the past couple of years.
Shock over the cost of buying property
The survey also claims 84% of people aged between 18 and 35 who have stepped onto the property ladder have been surprised by the array of hidden costs when buying a home. 30% of respondents said the most surprising element was legal fees.
Urban Jungle chief executive Jimmy Williams says: “We are all familiar with the Boomerang Generation, but the effects of the pandemic seem to have introduced a new trend – the ‘Catapult Kids’. Our research has revealed that half of 18 to35 year olds would relocate in order to put down a deposit, with a quarter saying they are thinking about moving abroad in order to achieve their dream. A lot of young people have been disadvantaged since the pandemic began, and we need to ensure this generation is set up for the next chapter of their lives.”
There has been focus on the challenges facing first-time buyers of late
According to research carried out by MoveStreets, the average cost for these buyers is £225,607 while ten years ago, it was £138,973. This represents a rise of 62%.
Adam Kamani, CEO and Co-Founder property portal of MoveStreets, commented: “It’s a tough ask to climb the property ladder and today’s first-time buyers are facing a considerably tougher task than those before them with the average first home now costing almost £226,000. While we’ve come to expect that property prices are likely to climb due to the government’s failure in providing enough new affordable homes, it really does put it into perspective when looking at how much they’ve increased in the last decade.”
Adam Kamani concluded by saying; “To think that in a single year, the average first-time buyer property will cost a further £8,663 when compared to the previous year is quite amazing and it’s a wonder so many struggle to buy in the current climate. Let’s not forget this is only first-time buyer properties we’re talking about here, which should essentially be the most affordable on the market in any given location.”
Just Lets – Here to Help
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
The team at Just Lets Peterborough continue to operate remotely to ensure we can continue to serve you and your tenants throughout this covid period and beyond. Please contact us through our usual channels – email us at email@example.com or call us today on 01733 346255.