Tamworth First Time Buyers Need 7.1 Times Annual Salary to Get on Housing Ladder

welcome to Tamworth
welcome to Tamworth

What is it to be British? Our stubbornness, long-suffering stoicism, our vexation at injustice, our obsession with football and rugby, we are weather obsessed external awkward noncommittal modest people whilst underneath seething like a volcano because someone jumped the queue….. and our No.1 obsession is with the property ladder.

This ‘love affair’ with owning our own home has been both good and bad for the UK as a whole. This has given people financial freedom in their later years whilst also reducing the quantity (and quality) of housing provision whilst adding the extra pressure of a ‘them and us’ society. Strong words I know .. but let me explain more.

I honestly believe that most Governments since the end of the 1970’s, Conservative and Labour, have attempted to nourish our addiction to home ownership (to keep the housing market on track) with the Council House Right to Buy sell off in the 1980’s, tax relief of mortgages, relaxation of the mortgage rules in the late 1990’s/early 2000’s and most recently, the Help to Buy scheme.

But the Brits haven’t always had this obsession.

Roll the clock back 100 years and, in 1918, just under a quarter of all Brits owned their own homes and the other 77% rented. Go back 50 years to 1968, and only 46% of people owned their own home, the rest rented. This homeownership thing is quite a recent phenomenon.

According to my research, anyone looking to get a foot onto the property ladder as a first-time buyer in Tamworth today, AS A SINGLE PERSON, would need to spend 7.1 times their earnings on a Tamworth first time buyer property.

Using the numbers from the Office of National Statistics (ONS), the average value of a first-time buyer property in Tamworth today is £139,000, compared to £116,000 in 2007. If we divide those property values by the average annual earnings of first time buyers – in 2007, that was £17,281 pa and that has risen to £19,673 pa .. giving us the ratio of 7.1 to 1.

However, what must be remembered is that these are raw statistics from the ONS and don’t take into account other factors, like most people buy their first home as a couple. Also, mortgage rates are at an all-time low and who can remember mortgage rates of 15%+ in the 1990’s, meaning borrowing today is relatively cheap. Also, 95% Loan to Value first time buyer mortgages have been available since the end of 2009  (i.e. you only need to save a 5% deposit) and first time buyer rates of 2.19% fixed for 5 years can be obtained (correct at time of writing this article)… it is cheaper to buy than rent .. fact!

I believe there has been a mind-set change to owning a home. Home ownership was the goal of the youngsters in the latter half of the 20th century. Britain is changing to a more European model of homeownership, where people rent in early to mid-life, wait to inherit the money from their parents when in their 50’s and then buy.. thus continuing the circle – albeit in a different way to the last Century.

This means the demand for privately rented accommodation will, in the long term, only continue to grow. If you would like to know more about where the hot spots are for that growth in Tamworth, then one place would be my property blog www.tamworthpropertyblog.co.uk or if you want to drop me an email or telephone call, feel free to pick my brain on the best places to buy (and not to buy) in Tamworth to ensure your rental investment gets you want you want. The choice is yours!

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk

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Ask Lorraine – Abandoned items by my Tamworth tenant!

Ask Lorraine  – My tenant has vacated the property and left a single bed, a washing machine, a bicycle and a wardrobe full of mens clothes. I have tried to contact her but her phone number appears to have been disconnected!

Is the law on my side, can I dispose of everything at the local tip?

Ben

Lorraines Answer  – There are many scenarios :-

  • A tenant has left furniture or personal items.
  • A vehicle has been abandoned on your property.
  • Students have moved out of your property and items have been left behind and you aren’t sure who they belong to.

Should items be left on your land or in your property you cannot simply remove them unless you have given the owner reasonable notice of your intention to remove and dispose of the goods.  It may seem ridiculous, however, this also includes trespassers leaving items.

Make a list/inventory with lots of photographs of any items which have been left. Make contact with the person/s concerned providing the information below.  If you are unable to contact them, you should make a couple of signs with the following information:

  • Your name and contact details
  • A list of the items
  • Any fees  you intend to charge for storage upon collection of the goods
  • A reasonable timescale for collection, 14 days is the norm.
  • Where the items will be sold if this is your intention, and any storage cost incurred that will need to be repaid

Post the sign on the inside of a ground floor front window so that it can be seen and post the other sign on the rear access door (if appropriate)  and take photograph evidence of the signs in situ so that if you are asked you can provide evidence you have carried out the steps outlined.

Once the 14 days in either case has passed, you can now sell or dispose of the items.

Retain details – how you have disposed of the items.

Until next time.

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