The Conservatives believe that “Rent to Buy” is the solution, whereas Labour are in favour of rent caps and extended tenancy terms.
Since the turn of the Millennium, there has been a significant change in the proportion of people who own their own homes in Tamworth. In 2001, 73.15% of homes in Tamworth were owner occupied, today the figure is 68.23% a decline in such a short time. Buy to let landlords find that young tenants are increasing in numbers because the young, say they can’t afford a deposit to buy, unless of course, parents finance them. Today’s young folk have different values, it used to be, that saving for a deposit was the number one priority and you went without to save up, now though owing a property is no longer high on their list.
First time buyers have been able to obtain 95% mortgages since 2009. This should have helped them get on the property ladder, but as first time buyers save their deposit, house prices rise and their deposit is continually having to rise at the same rate. A treadmill that is not easy to get off!
New stricter mortgage rules introduced in 2014, means that most 20-25 something’s in Tamworth are renting instead of buying. We can’t blame landlords for this, they are not responsible for buying up all the property. For every mortgage approved for a landlord last year, three were approved for first time buyers!