following regulatory changes announced by Chancellor Rachel Reeves, potentially opening the door for more buyers to secure mortgages.
For homeowner s, this could mean a broader pool of buyers and a stronger, more active market when selling a proper ty.
RENTING FOR LONGER THAN EVER
Perenna’s research also found that f i r st-time buyer s now spend 12.8 year s renting before purchasing, up f rom 11.4 years a decade ago, based on the assumption they star t renting at age 21.
Colin Bell, founder of Perenna, said: “There is a time and a place for renting. While some may make the personal choice to rent in the long term, others are forced into a seemingly never-ending cycle of rising costs.
Renting is ultimately money spent without return. Unlike mortgage payments, which build equity, rent offers no stake in the property – even though renters often pay more each month than they would for a mortgage.”
RENTS HIT RECORD HIGHS
The rental market is under extreme pressure, with average rents rising by 5.7 per cent in the year to August:
l UK average monthly rent: £1,348 l London: £2,253, the highest in the country l Nor th East: £745, the lowest l Wales: saw the sharpest annual increase, up 7.8 per cent to £811
l Scotland: up 3.5 per cent to £1,002
Ben Twomey, chief executive of Generation Rent, said1: “Rents continue to rise faster than wages, swallowing more and more of people’s income.
We rightly have caps on our energy and water bills, but there are no protections to stop landlords from pricing us out of our homes.” For landlords, this highlights both oppor tunity and r isk . Strong rental demand can be positive for returns, but it also increases the likelihood of political action to control rising rents.
LOW-DEPOSIT MORTGAGES OFFER HOPE
To help renters break f ree from the rental trap, some lenders are introducing low-deposit mor tgage products. l Newcastle Building Society, for example, has recently launched a two per cent deposit mor tgage.
While these products could help some first-time buyers, they often come with higher interest rates and str ict eligibility rules, meaning they are not suitable for everyone.
Colin Bell believes more needs to be done1: “With house prices rising, renters are spending their hard-earned money without gaining an asset. The market needs better financial mechanisms to lift buyers onto the ladder.”
WHAT HOMEOWNERS AND LANDLORDS SHOULD CONSIDER
l For Homeowners: The introduction of more f lexible mor tgage rules and low-deposi t products could increase the number of active buyer s in the market. This may help maintain proper ty values and make it easier to sell your home when the time comes.
l For Landlords: Higher rental costs may strengthen demand for rental properties, but landlords should plan for possible regulatory changes such as rent caps or
increased
tenant protections. A balanced approach to rent setting will help maintain strong relationships wi th tenants while reducing r isk .
LOOKING AHEAD
The next few months will be crucial for both buyers and sellers. With new mortgage products emerging and lenders relaxing affordability criteria, more renters could finally make the move into homeownership.
For homeowners and landlords, staying informed about these shifts is essential to protect investments, plan future moves, and adapt to a changing housing landscape.
At Moneywatch Finance, We are here to help with any property, mortgage & insurance advice you need, our advice is independent, confidential & impartial.
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For further information please contact Peter Hunt on: 0121 503 0961
www.moneywatchfinance.com
Peter is one of the panel experts for the Grand Designs live TV show and has been recognised in the Times Vouched For guide to the UK’s top rated financial advisers every year since 2019
LIVE24-SEVEN.COM
THE MIDLANDS PROPERTY GUIDE M O NE Y WAT CH F I NA NCE
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