Have Attitudes to Home Ownership changed in Hampstead?

Speaking to a Bank Manager the other day in Hampstead, we got talking about the state of the Hampstead property market and whether we, as a Country, are turning more and more to the European style of property ownership, where it is the norm to rent as a opposed to automatically buying once you have a good job etc.

Even though a recent report by the Halifax stated homeownership remains a goal for 85% of twenty to forty five year olds, there is information emerging that attitudes in the UK towards renting your own home as opposed to owning it have softened, showing more and more, that renting is being seen as a life style choice.  In fact it is recognised in learned circles that the cycle of renting is also repeated by the fact that people who grow up primarily in rented accommodation are themselves more likely to rent than buy.

The biggest barrier often mentioned to buying a house is the claim that they are not buying property at the moment because of a lack of sufficient wages and by the high level of deposits but like we said a few weeks ago, in Hampstead, if a couple, both on the average Hampstead salary of £37,431 pa,assuming they had a reasonable credit history they would be showered with lenders offering them a 95% mortgage (a reasonable credit history means they haven’t defaulted on loans, paid all their bills on time nor got any County Court Judgements.

Just because you missed just one credit card payment wont mean you have messed up your credit score and your ability to get a mortgage) and they would only need to find £17,500 as a deposit to buy a very nice one bed apartment in NW3 (not off the High Street but still in a decent part of the suburb) – and if raising the deposit was an issue, in Belsize Park, with a £13,000 deposit  you could buy a decent apartment and the monthly payments would be cheaper than renting. ..it comes down to the perceived capability of the youngsters in Hampstead to buy nowadays.

Interestingly, when I looked at the figures, the average Hampstead tenant has a younger profile (especially the sub 34 year olds) than the English and Welsh average.

So what does all this mean for Hampstead landlords and future Hampstead landlords? I honestly believe there is a difference between the hope and perceived capability of the younger generation to buy a home. Although homeownership is seen as advantageous by a majority, many tenants admitted in the Halifax report they are not taking the steps they need to purchase their own home.

As the local authority aren’t building any properties in Hampstead, people still need a roof over the head, and that is why, as I mentioned a few weeks ago in the NW3 Property Blog, the demand for rental properties will only continue to steadily rise in the coming decade. If you want to know where the Hampstead Property market is heading and where you should (and shouldn’t buy), maybe the one place you should visit is the NW3 Property Blog www.NW3propertyblog.com or send me an email to chris@ashmoreresidential.com

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If you are looking for an agent with experience that can help you find the right tenant for your property, then contact us to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 7435 0420. Pop in for a chat – we are based on Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. The kettle is always on.

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