About Time We Asked: Is Home-Ownership an Unobtainable Dream?By Angelica Malin
What does home-ownership mean to you? Does it represent the best decision of your life to date, and one that has enabled you to set up your family? Perhaps you have experienced issues with repaying your mortgage and have had to consider selling your property in the past, and consider owning real estate as something of an unmitigated nightmare.
If you are like the majority of the UK, however, home-ownership is probably becoming an unobtainable dream. This is certainly the opinion of experts, with fears mounting that we may soon be left with a generation of adults that simply cannot afford to invest in real estate.
In pure statistical terms, the average price of a UK home increased by £18,000 between December and January this year, peaking at £288,000. This meant that house prices throughout the UK increased by nearly 7% last year, with values in England soaring at a particularly high rate. This left the average value of an English home even higher at £301,000, which is way beyond the means of most households.
Despite the inflated nature of these numbers, however, they still do not do justice to the issues that exist in the current market. To understand these statistics in greater context, it is important to note that house prices are rising at a rate that is three times faster than earnings in the UK. This trend is also set to continue for the near-term future, meaning that the level of demand that has driven the market during the last 18 months may quickly begin to dissipate.
In this respect, it is clear that home-ownership is fast becoming an unobtainable dream in the UK, even if it is not quite yet at this point. There needs to be immediate action to help reverse this trend, however, with the government being implored to take even greater strides towards partnering with private construction firms and building affordable housing. With the sale of public land continuing at pace, we need to see an influx of new homes quickly if the market is to achieve greater balance.
If we do see a large number of affordable properties listed for sale on the market, this will create a greater balance between supply and demand and help to regulate price growth organically. This is keep values more closely aligned with earnings, and empower buyers to achieve their dreams of first-time ownership.
This is crucial for the UK society as a whole, with home-ownership a core foundation of family life and values. For years families and financial security have been raised on the foundation of a real estate investment, easing the burden on the state and creating a more empowered generation of adults. If this is to continue, the government must continue to be proactive and seek out ways of regulating price growth in the marketplace. If you are away from home a lot and you’re growing concerned about wasting money and energy on your property, remember to explore the idea of vacant property services for a stress-free experience.