Brits Abandon the Property Dream

We’re currently in the middle of an economic slowdown, and it doesn’t look like we’ll be coming out of it any time soon.  The Euro is in crisis, unemployment is on the up, and more and more families are struggling to make ends meet.

This is having a strong impact on the property market.  Property prices increased by 1% on average last year.  In contrast, inflation is at 5%, so, in balance it’s safe to say that the property market has declined.

Renting is On The Up

It’s easy to understand why people would choose to rent when faced with economic uncertainty.  Nobody would want to take on a mortgage that they don’t think they’d be able to pay back.  During the Thatcher era, owner occupancy was the done thing, and people that grew up during that era became convinced that buying your own home was a part of becoming a full member of society.  The neatly trimmed lawn, quaint loft conversion, and two car garage was a part of the dream.  But rushing to take on a property, and the debt that it entails, is not always a wise decision – especially if you hop on to the property ladder at the end of a boom, and right before a bust.

Renting offers more flexibility financially – it’s easier to get out of a short term lease than it is to sell your home if you need to move for work.  It’s also less likely to ruin your financial records if you lose your job and end up having to move to a smaller property.

The Trouble with Renting

Renting has its own problems, though.  In a market where many people still have buy-to-let mortgages, and landlords aren’t as strongly regulated as they are in other countries, you’re taking a gamble when you rent a property from a private landlord.  Will the property be as described?  Will it be well maintained?  Will they honour the lease, or attempt to force you out on a whim?  Even with the law on your side, a bad landlord can cause a lot of unnecessary stress.

Even renting from a housing association can be a frustrating experience.  For some people, buying a home meant investing in a home for life – not just until the next big step of their career.  When the family grew, the cottage would be expanded via a loft conversion and a conservatory.  Renters don’t have that luxury.

When you rent a home, you have to get permission from the landlord for pretty much any change you want to make.  This lack of flexibility isn’t a problem for a stop-gap residence, but it can be frustrating when you get comfortable in a property, and start looking to make changes.

What Does the Future Hold?

Now that the housing market is gradually becoming de-valued, there’s a chance that we might see a return to sensible prices, but even once that happens, it will take time before consumers become  confident enough to consider getting back on to the housing ladder.

This article was written by Amy Fowler on behalf of Buckley Loft Conversions, who build loft conversions Birmingham and loft conversions Staffordshire.

Amy has almost given up on the idea of ever owning her own home.