Rents in Bexley Borough rise by 3.8% in the last year

-

Back in November, the Office of National Statistics stated that average wages rose by 1.8% year on year. When adjusted for inflation, Bexley people are 1.5% better off in “real” terms. That’s great news for homeowners, as their mortgage rates are at their lowest ever and their spending power is increasing. For tenants, however, the news is not so good.
The average rent that tenants have to pay for private rental properties in Bexley Borough (i.e. not housing association or council tenants) rose by 3.8% throughout 2015, eating into most of the growth. And 2015 wasn’t a one off. In 2014, rents in Bexley Borough rose by 3.0% (while salaries only rose by 0.2%) It’s not all bad news for Bexley tenants, because in 2013 rents rose by 2.5%, but salaries by 2.2%.
It is noteworthy that the private rents Bexley tenants pay are only 27.6% higher than in 2005. That means that they are not even keeping up with inflation, which rose by 27.8% during the same period (although salaries rose by just 22.3%).
Increasingly, people in their twenties and thirties who rent are saying that it’s their choice. The days when owning your own property was a guaranteed path to affluence are long over. I know keep mentioning Europe, but some of the highest levels of home ownership are in Romania at 96.1%, Hungary at 88.2%, and Latvia at 80.9%, none of which are economic dynamos. Even in West European countries like Spain and Greece, they are at 78.8% and 74% respectively, and both are on their knees, riddled with national debt and massive youth unemployment.
At the other end of the scale, whilst homeownership is at 64.8% in the UK, it is very different in Europe’s powerhouses. Only 52.5% of Germans and 44% of Swiss are homeowners. Looks like eating chocolate and sauerkraut, and renting and good economic performance go hand in hand.
Joking aside, home ownership has not always been the rule in the UK. In 1918, only 23% were homeowners, and there was no council housing. That means that 77% were private tenants.
Tenants have choice and flexibility to move. They don’t have massive bills when the boiler blows up. Bexley Borough rents are growing, but not as much as incomes. It’s very difficult to decide whether or not to buy. While buying a Bexley home is a dream of most of our residents in their twenties and thirties, doing so might not leave them better off in the long run and it isn’t necessarily the best option for everyone.
Demand for rental properties is only going in one direction – upwards. 
One place for landlords and homeowners to find out more is on the Bexley Borough Property News Blog: www.bexleyproperty.co.uk. You’re also more than welcome to give us a call on 01322 559955 or pop in for a chat. Our office is located in the heart of Bexley Village (next door to the King’s Head Public House).

Comments

Post a Comment

Popular posts from this blog

79% More Bexleyheath Home Owners Wanting to Move Than 12 Months Ago

-
Image
As I have mentioned a number times in my local property market blog, with not enough new-build properties being built in Bexley Borough area to keep up with demand for homes to live in (be that tenants or homebuyers), it’s good to know more Bexley Borough home sellers are putting their properties on to the market than a year ago. At the start of 2007 there were 84 properties for sale in Bexleyheath (DA6) but by May 2008, when the credit crunch was really beginning to bite, that number had risen to 162 properties on the market at a time when demand was at an all-time low, thus creating an imbalance in the local property market. Basic economics dictates that if there is too much supply of something and demand is poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In fact, house prices dropped between 15% and 20% depending on the type of Bexleyheath property between the end of 2007 and Spring 2009. However, over the last five years, we have seen a steady ...
Read more

Bexley’s 826 Mortgage Time-Bombs?

-
Image
According to my research, of the 8,264 properties in Bexley, 3,824 of those properties have mortgages on them. 94.5% of those mortgaged properties are made up of owner-occupiers and the rest are buy to let landlords (with a mortgage). The concern is that 826 of those Bexley mortgages are interest only. My research also shows that, each year between 2017 and 2022, 10 of those households with interest only mortgages will mature, and of those, 2 households a year will either have a shortfall or no way of paying the mortgage off. Now that might not sound a lot – but it is still someone’s home that is potentially at risk. Theoretically this is an enormous problem for anyone in this situation as their home is at risk of repossession if they don’t have some means to repay these mortgages at the end of the term ( the typical term being 25 to 35 years). Banks and Building Societies are under no obligation to lengthen the term of the mortgage and, when deciding whether they are p...
Read more

Is Bexley Borough still a Great Place to Invest?

-
Image
Bexley is a fantastic place for families, retired couples or those wishing to travel or commute into London or further afield. It is situated 14 miles south east from the centre of London sitting on the border with the rolling hills of Kent. It is one of the greenest London boroughs with over 100 parks, as well as a walking route along the River Thames. It is hardy surprising that first-time buyers and families have chosen to settle in the area long-term. Although Bexley offers a village feel, it is very well connected with Greenwich, Bromley and Dartford nearby, with excellent rail, road and bus links into London. The average train time from Bexley to central London is just 38 minutes with its main line station linking London Bridge, London Charing Cross and London Cannon Street. Alternatively, if you are travelling by car, the A20 and A2 run through the centre of the borough before joining up to travel directly into Canary Wharf and towards the City. Overall safety and reasonable hou...
Read more