Monday 04 September 2023
Did you know that private rental prices in the UK increased by 5.2% in the last 12 months?
Nationwide's Chief Economist said, "Housing affordability remains stretched for those looking to buy their first home with a mortgage.
For example, a prospective buyer earning the average wage and looking to buy the typical first-time buyer property with a 20% deposit would see monthly mortgage payments account for 43% of their take-home pay (assuming a 6% mortgage rate)."
Therefore, many more people are forced to rent instead of buying, explaining the rapid rental demand we're seeing. This is sad news for those wanting to get onto the ladder but more of a reason for those able to purchase an investment property to do so.
In terms of mortgage activity, from Nationwide's graph below, you can see a slight increase in June for 5-year fixed-rate mortgages: