With a housing shortage, the outlook is not good for anyone hoping to get on or move up the ladder. Here are three tips for a leg-up.
A new think-tank called The National Housing & Planning Advice Unit (NHPAU) has reported that we're not building enough properties. It says around 190,000 new properties per year are planned, but household numbers are expected to increase annually by 223,000 until 2030.
This is not news. We told you about similar figures last year, which came from social justice charity The Town & Country Planning Association (TCPA). The TCPA also factored in the backlog; as we've not been building enough homes for many years, it estimated we need to build 240,000 new homes a year for ten years to catch up.
The NHPAU's job is pretty clear to me. Lobby the government to do something about the lack of properties. Any other ways to help home buyers will be artificial and short-lived.
It's first-time buyers who have the roughest time at present, as they're facing bigger deposits, larger mortgages and increased interest rates. So they may be particularly keen on the following tips.
1. Good hard grafting!
There are all kinds of schemes and tricks to try and help first-time buyers (such as sharing with friends or part-renting, part-buying), but the trouble all comes down to one thing: there aren't enough properties.
Therefore, the only solid way to get on or move up the ladder is through patience and effort. If you're struggling to find somewhere, don't give up, work harder! Some people are managing to do it, and those people will be the ones who are putting in the most effort.
To that end, visit every estate agent in all the areas you can conceive of living in. Then broaden your search. Take a drive to other towns or villages to see what you think of them. If they're suitable, call into estate agents there too. And keep checking property websites. There are loads, but of all those I looked at these four seem to stand out:
primelocation.com
PrimeMove.com
propertyfinder.com
rightmove.co.uk
2. Property auctions
The more ways you look to buy your property the greater the chances of you finding one. However, property auctions aren't the saviour of first-time buyers, and you'll need to weigh up the costs (e.g. surveys) and the risks of failing to get the property you're bidding for. Here are some tips:
- Before bidding on a property, watch an auction and ask the auctioneer any questions.
- Also before bidding, view the property, ask your solicitor to check title deeds and get a survey done.
- Some sales may have special conditions, so check the sales terms.
- To place a bid you need to have agreed a mortgage beforehand, and you must have your deposit on the day. The deposit might be around 10%.
Here are a couple of auction sites that look promising:
FindaProperty.com
propertyauctions.com
3. Plan for a lodger
If you're struggling to find a place for just yourself, or for you and your family, have a look at slightly larger properties and factor in what income you might get for a lodger. You may find this makes it more affordable,and your mortgage company should take the expected additional income into account.
Under the government's Rent-a-Room scheme, you can make £4,250 a year without paying tax on it. You'll have to seek agreement with your prospective mortgage company, and from your insurance company, but it can be a fairly easy way to make some money. If you use this scheme, you can't claim tax relief on your expenses.
Note to the Government: build more houses.
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