What's in the news: How has the housing market changed over the years?
It's no secret that the housing market has changed over the last few decades. Britain's homes are becoming increasingly less affordable, which is delaying the age that first-time buyers are able to purchase properties.
The Office for National Statistics has found that for more than half of the population today, young people's first houses aren't being bought until they reach an average age of 35. Compare this to the average age of 26 back in 1997 and you can tell that there has been a significant increase in the age of people reaching this key milestone.
Why is this?
We can assume that the increase is largely to do with the escalation of house prices. With an increase of more than 270% in house prices over the last two decades, it is clear that housing is less affordable than it once was and has pushed the goal of buying and moving house further out of reach.
Tighter rules on lending have exacerbated the problems, with many banks capping the amount individuals can borrow following the failure of several bank organisations during the credit crunch.
High deposits are what is contributing to the delay in many home purchases, with much more mortgages requiring this over high-interest rates.
Currently, it is thought that it is cheaper for London residents to rent over buying a property, with many mortgage providers asking for proof that lenders can afford much higher rates of interest.
What's the solution?
With the uncertainty of Brexit in the not too distant future accompanied by stretched affordability, many experts believe that housing prices will not show growth this year.
Many homeowners will look to improve rather than move in 2019, where housing extensions, conservatories and loft conversions are looking to be ever-more popular for adding value and style to homes.
From innovative home renovations to specially designed micro-flats, these money saving ideas are saving people more and more money.
Considering improving over moving?
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