For most of the people in the UK, renting a property is pretty much the ONLY way to have a place of your own – especially if you live within commuting distance of London.
There just weren’t opportunities to own a piece of the UK to call your own, and even those that had taken advantage of leasehold opportunities weren’t quite able to call the land theirs – truly theirs.
Today though, the winds of change are blowing. There are a lot of new programs, initiatives, and changes to the fundamentals of buying property in the UK that are opening up the market to people that wouldn’t have ever had the chance to buy otherwise.
Cameron’s government is a big part of that, but so is the shift from Generation Rent to Generation Buy. This new round of young people is serious about calling their homes their own, and they’re willing to do whatever they have to in order to make it happen.
Rent rates are up (and not just in London)
Though it should come as absolutely no surprise to anyone that London is home to the most expensive real estate prices and rent rates in the UK (far outpacing literally everyone else by significant magnitudes), rent is up across the board in the UK.
It’s not at all unreasonable to be asked to spend upwards of 238 pounds a month for a place just outside of Cardiff. That’s a big jump from even just a few years ago, and something that most didn’t expect or anticipate.
This is one of the major drivers behind people looking to buy their own property (or moving back in with their parents).
More people are jumping into the property ownership pool
When you’re paying more than 2000 pounds a month for a place in London that you wouldn’t have ever paid more than 150 pounds for anywhere else, you really start to think about spending a big chunk of that budget on an investment rather than an expense.
Banks, traditional lenders, and a new wave of anything but traditional lenders understand this, and are opening up financing options to people looking to push into the real estate world. Combine that with initiatives introduced by Cameron’s government, as well as a UK real estate landscape that is blossoming, and it’s easy to see why so many people want to strike while the irons hot.
Sure, you might not get a chance to buy property in London
(unless you have an old rich ancestor and a hidden fortune somewhere, or build the next big thing in technology), but that doesn’t mean that the chance to buy property is going to allude you any longer in the UK.
Renting of course still makes a lot of sense for those in the UK that are looking to establish themselves in a new city, as well as those that want to set down more temporary roots. But if you want to be sure that your money is working for you, it may be a lot smarter to invest it in a property you own compared to helping build someone else’s financial future with your rent payment.