Speaking to a Bank Manager the other day in Oakwood, we got talking about the state of the Oakwood property market and whether we, as a Country, are turning more and more to the European style of property ownership, where it is the norm to rent as a opposed to automatically buying once you have a good job etc.
Even though a recent report by the Halifax stated homeownership remains a goal for 85% of twenty to forty five year olds, there is information emerging that attitudes in the UK towards renting your own home as opposed to owning it have softened, showing more and more, that renting is being seen as a life style choice. In fact it is recognised in learned circles that the cycle of renting is also repeated by the fact that people who grow up primarily in rented accommodation are themselves more likely to rent than buy.
The biggest barrier often mentioned to buying a house is the claim that they are not buying property at the moment because of a lack of sufficient wages and by the high level of deposits but like we said a few weeks ago, in Oakwood, if a couple, both on the average Oakwood salary of £37,431 pa, assuming they had a reasonable credit history they would be showered with lenders offering them a 85% mortgage (a reasonable credit history means they haven’t defaulted on loans, paid all their bills on time nor got any County Court Judgements.
Just because you missed just one credit card payment wont mean you have messed up your credit score and your ability to get a mortgage) though they would need to find £45,000 as a deposit to buy a very nice one bed apartment in Oakwood – and if raising the deposit was an issue, in Southgate, with a £48,000 deposit you could buy a decent apartment. It does however come down to the perceived capability of the youngsters in Oakwood to buy nowadays.
Most tenants cannot afford to buy the properties they rent due to high deposits and as well as high living costs. The figures above may well be eye popping for some as most do not have the luxury of having the bank of mum and dad or a large inheritance to land in ones lap. Therefore, the prospect of renting and living a comfortable life and most importantly living within ones means is most likely until one day when the time is right to buy.
So what does all this mean for Oakwood landlords and future Oakwood landlords? I honestly believe there is a difference between the hope and perceived capability of the younger generation to buy a home. Although homeownership is seen as advantageous by a majority, many tenants admitted in the Halifax report they are not taking the steps they need to purchase their own home.
As the local authority aren’t building any properties in Oakwood, people still need a roof over the head, and that is why, as I mentioned in an article in the Oakwood Property Blog, the demand for rental properties will only continue to steadily rise in the coming decade. If you want to know where the Oakwood Property market is heading and where you should (and shouldn’t buy).
If you are looking for an agent with experience that can help you find the right purchaser or tenant for your property, then contact me to find out how we can get the best out of your home or investment property. You can email me [email protected] or give me a call on 020 7435 0420. Pop in for a chat – we are based at Ashmore Residential, 5 Netherby Gardens, Oakwood, Enfield, EN2 7PA . There is plenty of parking and the kettle is always on.
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