Recent figures published by the Department for Communities and Local Government have revealed home ownership within the UK is at its lowest level since 1988. What does this mean for the conveyancing sector and where is the property market now heading?
The number of people buying and occupying their own home has fallen by 5% within the last 10 years alone – and figures are set to decline even further. It seems, particularly within the last decade, that consumers within the UK are edging towards the same way of living as our many of our continental neighbours.
Eurostat, the official statistics bureau of the European Union (EU) reported in that 2013, the average proportion of home owners within EU countries was at 70%. This was the level the UK was at in 2005, but the latest data shows the UK now has one of the lowest levels in Europe, with only 64.7% of Brits owning their homes. When compared to renowned rental lovers, this figure is only 0.3% above France.
The latest estimations from experts say that 2014 figures could see the UK home ownership level fall behind France, which will be the first time this has occurred since the Eurostat data began 20 years ago. This is also expected to decline even further this year, which could result in conveyancers seeing a reduced number of home buyers, and further increases in the amount of landlords seeking their services.
Since the start of the new millennium, less than half a million (400,000) newly built homes have been bought for home owners to occupy. Of the new housing developments delivered between 2000 and 2012, the vast majority were purchased within the Buy To Let market, with 2.5 million homes allegedly being bought for rental purposes.
This market has become increasingly attractive to investors, with some speculating this could be down to Buy To Let borrowers being able to access interest only mortgages, with interest being offset against tax.
The question now stands – which direction would be the most beneficial for conveyancers, and more importantly, for the nation as a whole?
Much of the future of the property market is within the hands of the next elected parliament, so it will be intriguing to see what takes place in the run up to the election, as well as the months that follow.
