I had this really interesting chat with some of my tenants
the other day on renewal of their tenancy in Aylesbury. They have been tenants
of ours for quite a while, so I know them quite well. We got talking and I asked if they had ever
thought of buying a property for themselves, to which they replied back with
the title of this article. It made me think and so I did some more research
into the subject which I want to share with you.
After the end
of the Second World War, just over a quarter of the UK population owned their
own home, the rest rented from private landlords or the local Council. If
someone told you in the 1970’s and 1980’s that they rented, they were
considered a second class citizen. Everyone wanted to own their own home ... it
was the done thing. We think that home ownership will inevitably happen, but it
won't.
It all
changed in the 1970’s, when two things happened. Firstly, the number of people
who owned their own home broke through the 50% barrier in 1971 and by 1981 it
was at 57%. Tied in with that, the average house prices in Aylesbury were
doubling, at one point, every four years in the 1970’s so property and profit started
to feed off each other.
To put that growth in context, if we were to look at the
last 85 years in Aylesbury, in 1930, the average Aylesbury property was worth £657.
It took 16 years for Aylesbury property values to double, rising to £1,624 by
1946. Another 15 years and the average Aylesbury property doubled again to £3,083
in 1961. The next doubling only took 10 years, as by 1971 the average Aylesbury
property had reached £6,268 in value.
It was the 1970’s when things really took off, as by 1975 (i.e.
only four years) they had doubled to £13,117 and they doubled again to £26,259
by 1980. It took another eight years for values to double again, as an average Aylesbury
property reached £54,924 in 1988. Twelve years had to pass until they doubled
again in 2000 (£113,009) and just six years to double again by 2006, when they
reached £227,924. Where are we today?
The average property value in Aylesbury currently stands at £322,700.
We could blame Maggie Thatcher for making home ownership the
ultimate goal, but what we now need to consider is that the country is turning
on its head and we need to, as a Country, love renting again. Some blame the
banks, but obtaining a 95% mortgage is hard work, but nowhere near impossible.
A typical Aylesbury first time buyer for example could buy a modest property locally
and it would be cheaper each month in mortgage payments than renting.
People might say on the surveys they want to buy, when it
comes down to it. If you have been living in a top of the range large property in
Watermead , but the bank will only lend you enough to buy a smaller property in
a not so good area what would you do? Again, if you were a twenty something, what
would you do? Look once more at the title of the post ... “The way it
works is, you have to rent where you want to live, or buy where you don’t want
to live,”
With tenant demand only going in one direction that is probably
why more and more people are getting into buy to let in Aylesbury. With the new
rules on pensions and the ability to use them to buy residential rental
properties from April onwards, this could be the time for you to buy a rental
property. You must take advice on your pension from an Independent Financial
Advisor (there are plenty in Aylesbury) and you must take advice from people
who know what to buy (and not to buy) in Aylesbury to ensure you get the best
from your investment. One place for such advice is the Aylesbury Property Blog http://theaylesburypropertyblog.blogspot.co.uk/
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