UK MARKET INSIGHT


UK Market Insight from Hamptons International’s Research Team Available to all Hamptons International branches


Sales


Housing affordability, especially in London, has long been a hurdle to market activity, especially


% owned their own home 25-29


30-34 YEAR OLDS since the introduction of more


stringent mortgage criteria in 2014. Despite the fact that prices are still high, historically low mortgage rates and government schemes are helping.


Te new Lifetime ISA will help home-buyers to get their foot on the ladder sooner


Over the past year, the ability to buy the


average home has improved almost everywhere in England and Wales. With low inflation and wages increasing in real terms, most house- holds have seen their money stretch a bit further, leading to a return to the market of the single first-time buyer. Tis is good news as this adds to the market’s liquidity. Saving up a deposit has been the biggest challenge, but the new Lifetime ISA (LISA) will help homebuyers to get their foot on the ladder sooner. According to our research on the time it takes to save a deposit, the boost from the LISA means single buyers will be able to save up three years faster in England and Wales, and 19 years faster in London – a significant boost to affordability, especially if combined with a Help to Buy loan.


4 34% 21% 10% London 12% South East


Rent increase Income increase


Londoners have fared the worst with the biggest rent vs income gap


In terms of how much it costs to rent, the popular narrative of ever-rising rents growing faster than income is misleading, as rents in most of the country have only grown in line with wages, which, according to the Office for National Statistics, have increased by 12% since 2007. In real terms, one in five tenants are still paying less than they were in 2007, but in London and the South East, it is a different story. A lack of supply and high demand has pushed rental growth well beyond that of income. Londoners have fared the worst, with rents increasing by 34% and incomes only increasing by 10%. In the South East, meanwhile, the figures


are 21% and 12% respectively. HAMPTONS.CO.UK @FE_HAMPTONS 55% 30% 46% 68% YEAR OLDS


Fionnuala Earley


Residential Research Director Hamptons International


Lettings


Te rental market continues to increase its importance across all of the UK, with the age profile of those renting rising year on year. Tis is reflected in the fact that in 1996, 55% of 25 to 29-year-olds owned their own home, while now it’s just 30%, and the 30-34 age range has decreased from 68% to 46%.


1996 2016 1 in 5 tenants are still


paying less than they were in 2007


A lack of supply and high demand has pushed rental growth well


beyond that of income


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