‘Accidental’ landlords are hoarding homes
Older homeowners are find themselves ‘hoarding’ previous residences to let out, largely due to huge price increases during the housing boom.
When people hear the word ‘hoarding’, they often get an image in their head of an elderly person who refuses to throw anything away and move on with their lives. And now, the London School of Economics has found that older generations are doing the same with their homes.
Thanks to the housing boom that ended just over ten years ago, homeowners who had seen the price of their property skyrocket have found themselves able to purchase new homes without selling the house they’re leaving – a practice which property selling experts have now found to limit the amount of affordable housing available for younger generations.
While many have previously blamed landlords who purchase via buy-to-let mortgages, now that six months have passed since the stamp duty tax hike with little effect, it is becoming clear that many of the homes currently available for rent were bought on residential mortgages by those who previously lived there, but did not need to sell in order to buy a new home themselves.
Resolution Foundation’s Torsten Bell recently stated at a Tory conference that millennials are now a lost generation – and that it is now too late to help them in any meaningful way. So, is it any wonder than the Conservatives are beginning to lose youthful voters towards Corbyn and his revived vision for the Labour party?
Described as ‘accidental’ landlords, those who are enjoying a rental income on top of their working wage are continuing to prosper, while those who languish in the lower percentiles of personal wealth are continuing to find home ownership an ever lessening possibility.
For now, at least, the way forward seems unclear. With the recent announcement that the Help-To-Buy purchase scheme is concluding at the end of the year, and comparison service Moneyfacts finding that the number of available mortgages built around smaller deposits have almost halved since 2014, those looking to get a foot on the property ladder could find themselves waiting a long time.
Of course, this isn’t just bad news for millennials, but also for those who genuinely do need to sell their homes fast in order to free up capital, or simply to move away for their careers as potential homeowners are not in a position to apply for a mortgage. Those who do need to sell can always use the services of a quick move now company, who will buy any house for cash without needing to endure the long drawn out process typically associated with estate agencies.
Hoping to sell your house fast? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.
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