The UK property market is in a state of flux at the moment, with many would-be homeowners finding themselves struggling to get on the property ladder. The housing crisis has made it more difficult than ever for people to purchase their own home, and there are several challenges that hopeful homeowners now face. In this blog post, we will take a look at five of the biggest challenges that people are currently facing when trying to buy a property in the UK.
Property prices have been on the rise for several years now, and they show no signs of slowing down. This is one of the biggest challenges facing hopeful homeowners, as it is becoming increasingly difficult to find a property that is within budget. And Halifax has reported one of the widest gaps between renting and owning since 2015. So, to stand any chance of getting onto the property ladder, you’ll need to have a larger budget than ever before or be willing to compromise on space and location.
Another challenge that soon to be homeowners are facing is the rise of holiday rentals. Holiday rentals and in particular AirBnBs are becoming increasingly popular with more people taking staycations amid the global pandemic. But sadly this means that there are fewer properties available to purchase in rural and seaside towns, pricing locals out of the market.
Another massive hurdle renters need to overcome when saving up to buy a first home is sky-high rent. In recent years, rents have increased significantly in the UK, with the average person now spending around 30 percent of their income on rent. This leaves little room for people to save up for a deposit on a property.
One of the best ways to save up for a deposit and get your foot on the UK property ladder is to reduce your monthly outgoings. But, the cost of living is increasing at a rapid pace, making it difficult for people to save any money. Energy bills and the cost of food, travel and other essentials have all increased in recent years, and this is likely to continue. This makes it harder than ever for people to reduce their monthly outgoings and save up for a deposit. In fact, UK families are now spending an average of £900 more per year than they were five years ago, and this is likely to increase in the future.
The UK's political landscape is rocky to say the least, and this is having an impact on the UK property market. Two recent developments are adding to the instability. One is the war in Ukraine, and the second is the lockdowns being used in China to combat new cases of Covid-19. The war in Ukraine is keeping energy prices at an all-time high, making it difficult to save up for a deposit, as well as live comfortably and without worrying about monthly finances.
But the lockdowns across China are also having a knock-on effect on global supply chains, leading to shortages of products across many industries. How does this affect the UK property market? Well, homeowners who are involved in business may reconsider putting their homes up for sale, since business expenses may increase. With economic difficulties felt across many businesses in the UK, unemployment could be on the cards too! And economic and political unrest certainly doesn't help those hoping to climb the property ladder.