Normally one should be able to find property to rent in almost every village Edin Dzeko Manchester City Shirt , town and city in the UK. Previously in the years leading up to 2008 there was a boom in the number of properties available to rent in the UK as private investors put their savings into this type of venture.
These were usually known as buy to let mortgages and the banks were so eager to fund this types of properties as well as fund huge developments by the major property builders who were busy building all across the country.
By 2008, the banks had become over stretched with the main burden of debt on the mortgage owners, the property developers and the property investors and this was suddenly leading to the collapse of first the Northern Rock building society and then the government bailouts for a few other banks.
Some finance houses and bigger banks actually collapsed due to these issues and other related issues like fraud and bad lending and up till today the global economy has taken a downturn with the UK been just as badly hit and words like credit crunch, austerity measures and quantitative easing are been banded around the place.
This particular situation has lead to a peculiar situation in the housing market. Previously the property developers were building houses and homes for the rising population no doubt exacerbated by the growing immigration from the new EU countries and the rising local population coupled with the number of people who were now aspiring to own their own homes.
Unfortunately the banks have become more responsible lenders and are requiring higher deposits for mortgages thereby creating a situation where most people have resigned themselves to renting apartments or houses as opposed to buying one Dedryck Boyata Manchester City Shirt , hence the coining of the term “generation rent”!
This term is based on the assumption that the current generation of people living in the UK will end up living in rented or council accommodation for much longer compared to their parents and as research shows the average age of first time buyers in the UK has moved up in recent years as most people now have to save for longer to acquire the necessary deposit whilst at the same time living in rented accommodation.
This is put a lot of pressure on the rental market and the demand for rented accommodation has grown compared to the demand for house sales creating a situation which has not been matched by the supply of suitable accommodation.
Invariably what we are seeing is a scenario where rents are rising due to the demand for rented homes by generation rent thus making it more difficult to buy homes on the long term.
Latest Activity: Aug 15, 2014
This group does not have any discussions yet.