In the past 20 years, the number of people in privately renting in their 30’s and 40’s has increased three-fold. In 2017, a third of 35 to 44 year-old’s were living in private rental accommodation. This statistic was fewer than one in 10 back in 1997.
However, homeownership rates amongst those over 65 have increased, with almost three-quarters owning a property outright, this is compared to 56% back in 1993.
The Office for National Statistics have warned that homeownership has become concentrated amongst the older generation, with the number of private renters increasing across all other age groups. According to the ONS, people aged 65 and over were the first cohort to benefit from the Right to Buy scheme. The Right to Buy scheme gave council house tenants the opportunity to buy their homes at a discount, which in turn boosted homeownership in this age group.
The majority of the ex-council properties that were sold in the scheme were not replaced. In 1979, a third of people in Great Britain lived in social housing, with this falling to 17.6% in 2017. Due to the drop in social housing availability, younger generations have been prevented from benefiting from the same scheme to the extent of those aged 65 and over.
Property affordability has become increasingly stretched, due to a combination of stagnant earnings and strong house price growth over the last decade, all of which make it harder for people to get on the property ladder.
It’s worth remembering that the data provided by the Office of National Statistics is 2 years out of date, and over the past two years there’s been a significant increase in first-time buyers. In 2019, the number of people buying their first property hit a 12-year high, with over 350,000 people buying their first home. This could be due to an increase in government initiatives, including Help to Buy schemes and stamp duty reliefs. All these factors have helped encourage first time buyers onto the property ladder.
Manchester’s rental market
Although things are looking up for first time buyers, high property prices are keeping tenants in private rental accommodation for longer than ever before. While this isn’t great news for tenants who want to buy, it is good news for investors wanting to make the most out of their buy to let investments.
Beech Holdings have a number of investment opportunities available for those wanting to make the most of Manchester’s booming rental market. One of these developments is located on Great Ancoats Street, a much sought-after area in Manchester city centre. Due to rapid development and growth in the district, prices are steadily increasing throughout the area, making this development a highly profitable investment. Beech Holdings is offering unrivalled NET yields of 7% on Great Ancoats Street, assured for two years by one of the city’s leading landlords, Manchester Apartments.
If you’re interested in investing in Great Ancoats Street, get in touch with our team today.