Couples In Property Limbo

by Property 118

9:00 AM, 25th October 2012
About 6 years ago

Couples In Property Limbo

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Couples In Property Limbo

Couples in property limbo are living in Flatshares with no way onto the property ladder.

  • 44% of couples living in flatshares say their living situation is affecting future plans to start families
  • 14% of couples in flatshares say they will never be able to afford to buy property
  • 35% of couples say the biggest challenge is finding flatshares that will accept couples
  • 13% of couples say they won’t even be able to afford to rent on their own

SpareRoom.co.uk surveyed couples currently renting rooms in shared accommodation to learn more about their attitudes to their living arrangements. Just like individuals trapped in the private rental sector and unable to buy, eight out of ten UK couples living in flat and houseshares say they cannot afford to get onto the property ladder or rent on their own, as deposit funds are eroded by the high cost of living and banks are still cautious about lending at high Loan To Values.

44% of couples who have no choice but to live in flat or houseshares say the predicament is affecting their aspirations to settle down and start a family. Another 36% said that, although they had no immediate plans to start a family, they believe their living situation could affect their future plans.

14% of couples who would like to buy cannot see their way out of the rental sector, saying they will never be able to afford to get onto the property ladder. While 45% of couples polled are aspiring to quit their house shares and rent on their own within the next two years, another 13% say they cannot even afford to move out of flatshares in the foreseeable future.

Due to the soaring costs of living only 21% of couples currently living in flatshares are actually saving up to buy a property and 12% say they are saving up to buy a property in the next five years.
Matt Hutchinson, director of Spareroom.co.uk, comments: “It’s an unfortunate predicament that many couples living in flat and houseshares can’t even afford to rent on their own, let alone buy a home together.”

“The problems these couples face highlight how difficult the current economic situation is for first time buyers. If a couple who already split rent and bills between them can’t save for a deposit, what chance does everyone else have?”



Comments

11:19 AM, 26th October 2012
About 6 years ago

Well yes this is all very sad for young couples but remember it is everyone wanting to buy a home and the availability of easy credit that has caused house prices to reach simply ridiculous and unsustainable levels in the first place. Either house prices have to fall considerably more, or we go back to easy credit and increasing prices or, and this is the most likely I think, we have another 5 years of the same before lenders lend more with more attainable deposits and /or the supply of new houses significantly increases. Trouble is, folk simply won't sell houses much cheaper than they are now I am guessing...

23:32 PM, 26th October 2012
About 6 years ago

Your assessment is correct; until property bought at the height of the credit bom can be afforded by present aspiring buyers then property will not be sold cheaper.
This will take about 20 years to achieve unless lenders change their criteria and allow IO mortgages.
Wages will not increase much over the coming years.
Tenants will have to get used to the idea of starting a family in rented accommodation.
I would have NO issue with renting to such family aspiring couples................................providing they pay market rent.
This means they will NOT be able to save for a deposit and obtain a mortgage to afford a property.
That's life!
I only afforded my property by remaining at home and SAVING hard and having NO social life.
It is a truism and is correct; you cannot have it all.
Living standards have to be unwound to where we were before the false increase in standards occurred , caused by lots of credit during the Blair years.

16:49 PM, 30th October 2012
About 6 years ago

I think it depends upon what is meant by 'market rent'. If you are meaning that the rent charged covers the landlord's costs plus a small profit margin, then OK. If you mean by that 'whatever can be sqeezed out of the pockets of the desperate' it isn't.

21:22 PM, 30th October 2012
About 6 years ago

Price points are somethng which are conditions of what the market will stand.
Capitalism is a war between supplier and consumer.
I wish to charge as much as the market will stand.
I am not the slightest bit interested in the desperation of any tenant.
If that means they have nothing left over after all bills have been paid; then so be it.
That has been my experience over the past 35 years.
Why should I charge less than the market rent to facilitate what a desperate tenant wishes to pay.
I will charge the maximum that I can.
Perhaps a tenant wishes to invest £50000 of their capital in provision or rental accommodation.
So no I will charge the maximum that I can.
Tough if the tenant cannot afford the rent or has not a lot left over at the end of the month.
I am NOT a charity.
I am in this game to make as much money as I can out of any tenant.
I do not force any tenant to sign an AST with me.
Quite frankly I could have been better off leaving my capital in a savings account.
Of course had I done so there would not be 4 rental properties available for tenants to rent.
No tenant should expect to be in a better position than someone who purchased at the height of the credit boom.
Indeed if my mortgage interest rate increased then I would be bankrupted.
Would a tenant wish to be in such a position.
NO they won't.
So I need to make as much as I can to ensure I build up funds to ensure I am able to subsidise the mortgage when and if interest rates increase.
Obviously I need to ensure that I provide the service that the tenant is paying for and I endeavour to do this.
Sorry tenants; but you cannot have a nice property and not pay the full price for it.
That is why rents are as they are.

12:29 PM, 31st October 2012
About 6 years ago

I have no issue with you charging in order to cover future voids and unforseen mortgage increases, that is quite fair.  Ditto a profit to cover your work and income stream.  What I am so against is landlords using the need of others for accomodation to unjustifiably raise rents.  Yours may be justified, I am not in position to comment upon this.  I am disquieted by the comment that capitalism is a 'war' between supplier and consumer and would merely quote 'do unto others as you would be done by'.


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