A new National Housing Federation report suggests that property prices and rents in England will rise substantially by 2020. ‘By 2020, the price of a first-time buyer’s home will increase by 42 per cent to £245,165. Although wages for 22 to 29-year-olds will increase by 36 per cent by 2020, this poses a huge challenge for those wishing to be homeowners. Low-earning young people would have to spend 16 times their average wage just to buy a home.’
‘NHF research shows that private rents are likely to be broadly stable through 2013, but could increase sharply, by about 6 per cent a year, between 2015 and 2020 as interest rates and house prices rise. In 2020, rents are expected to be 46 per cent higher than today. But, when the new flood of young adults born in the noughties starts university or a new job, they could push rents even higher in a country already chronically short of decent housing.’ Food for thought.
Specialist buy-to-let lender Mortgage Trust has launched a new, two-year fixed rate mortgage product with a zero product fee. The buy-to-let product, fixed at 4.25 per cent, also comes with the added benefit of a free valuation and is available to private investor landlords purchasing or remortgaging a single, self-contained property. Talk to your broker, as ever.
Heads up! We are currently at work on a Crossrail report and notice that Homes & Garden makes a reference to this in the latest issue. ‘Woolwich: Crossrail boost brings hundreds of new homes and fast rail links. Get to Canary Wharf, the West End and Heathrow in record time from this south-east corner of London by 2018, says David Spittles.’
‘Some places remain “up and coming” for years — in Woolwich’s case for about a decade. But Crossrail promises to be a game changer. When the Woolwich Crossrail station opens in 2018, about a dozen trains an hour will link this corner of south-east London with the jobs of Canary Wharf and the fun of the West End, while providing speedy travel to Heathrow. The area already has a DLR link and there are good overland train connections to London Bridge.’ Some of you have bought here already – let us know how that is going – and we are planning a visit and a lookaround for members in late August. Fancy coming along?