House asking prices have hit record levels across every part of the UK.
That’s according to the June 2021 statistics released by property listings website Rightmove.
The average price of properties now on the market rose by 0.8% to a third consecutive monthly record of £336,073, says Rightmove.
The new record figure appears to be another big blow to those people looking to get on the property ladder.
First-time buyers are faced with seemingly ever increasing prices – and in the vast majority of cases are unable to afford their dream first home. They often don’t know how to go about rectifying that situation either.
Economists and house-buying experts admit to having been surprised somewhat by the UK house price boom during the Covid-19 pandemic. The Bank of England’s chief economist, Andy Haldane, said the housing market was ‘on fire’ because of the stamp duty tax breaks brought in by the government, together with increased demand from wealthier households who had more money available in savings following the various Coronavirus lockdowns.
However, that still doesn’t solve the problem for those hoping to purchase their first home. It remains easier to rent, yet renting, in the long run, can prove to be much more expensive.
Many first-time buyers will still struggle to get on the property ladder even if house prices fall significantly, according to think tank the Resolution Foundation.
The Foundation said that back in the 1990s, a typical young couple managing to put away 5% of their income each year could save enough for a deposit in four years. As house prices have surged over the decades, by 2019 that figure had increased to 21 years!
The Foundation also said that many renters have been forced to dig into their savings since the Covid-19 pandemic started, making the task of saving for a deposit to get on the property ladder even harder.
This is where, historically, the Bank of Mum and Dad has often ‘come into play’, with much need financial assistance. But that particular bank might not be available just when you need it, or mum and dad might well need their spare cash for themselves!
New research by Fidelity reveals that young people have felt least financially secure as a result of the Covid-19 pandemic, with 18-34-year-olds being most likely to worry about their financial situation.
Now imagine you were an employer; maybe you are. Well, when it comes to your employees, what is the impact of staff struggling to achieve their dream of property ownership? And what impact does it have on your company?
Can you, as an employer, make a difference, in order to help your employees achieve their ambitions, perhaps securing that much sought-after mortgage?
Renting can offer flexibility to move locations relatively quickly. Is this a good thing or bad thing for employers….?
If not by a pay rise, then what other ‘helpful’ options are available to you as an employer? Have you a financial wellbeing policy in place that would enable your employees to fully understand their financial situation, and see just what they have to do in order to be able to land the house they want?
Having a flexible financial plan can help employees identify ways they can save money – to put towards that dream house.
Taking out a mortgage is a key part of someone’s life, but how does it fit into their bigger financial picture?
Lifetime work with employers to deliver a financial wellbeing programme which enables employees to understand their money options, including how to prepare and plan to acquire that very first mortgage.
We believe the power of financial guidance and planning can help people achieve all the things they want, today, tomorrow, and for the rest of their lives.