So what does this mean for the Aylesbury property market ... especially the tenants?
Back in November, the Office of National Statistics stated average wages only rose by 1.8% year on year, so when adjusted for inflation, Aylesbury people are 1.5% better off in ‘real’ terms. Great news for homeowners, as their mortgage rates are at their lowest ever levels and their spending power is increasing, but the news is not so good for tenants.
The average rent that Aylesbury tenants have to pay for their Private Rental Properties in Aylesbury (i.e. not housing association or council tenants) rose by 2.9% throughout 2015, eating into most of the growth. 2015 wasn’t a one off either. In 2014, rents in Aylesbury rose by 2.2% (where salaries only rose by only 0.2%) However, it’s not all bad news for Aylesbury tenants, because in 2013 rents rose by 1.8%, (but salaries rose by 2.2%).
… and it must be noted that the private rents Aylesbury tenants have had to pay for Aylesbury property since 2005 are only 20.1% higher, not even keeping up with inflation, which over the same time frame, rose at 27.8% (although salaries were only 22.3% higher over the same time period)
More and more, talking to 20 and 30 somethings who rent – it’s a choice. Gone are the days where owning your own property was a guaranteed path to wealth, affluence and prosperity. I know I keep mentioning Europe, but some of the highest levels of home ownership are in Romania at 96.1%, Hungary at 88.2% and Latvia at 80.9% (none of them European economic dynamos) and even West European countries like Spain at 78.8% and Greece at 74% (and we know both of those countries are on their knees, riddled with national debt and massive youth unemployment).
At the other end of the scale, whilst we in the UK stand at 64.8% homeownership, in Europe’s powerhouses, only 52.5% of Germans own a home and only 44% of Swiss people are homeowners. Yet home ownership has not always been the rule in the UK. In 1918, only 23% of people were homeowners, with no council housing, meaning in fact, 77% were tenants.
Tenants have choice, flexibility to move, they don’t have massive bills when the boiler blows up, it’s a choice. Aylesbury rents are growing, but not as much as incomes. To buy or not to buy is an enormously difficult decision. For while buying an Aylesbury home is a dream for the majority of the 20 and 30 something’s of Aylesbury , it might not leave them better off in the long run and it isn’t necessarily the best option for everyone. That is why, demand for renting is only going in one direction – upwards.
|Life as a Husky really is pretty tough.|