Are Attitudes to Home Ownership changing in Clacton?

Speaking to a Bank Manager the other day in Clacton, we got talking about the state of the Clacton property market and whether we, as a Country, are turning more and more to the European style of property ownership, where it is the norm to rent as a opposed to automatically buying once you have a good job etc.

Even though a recent report by the Halifax stated home ownership remains a goal for 85% of twenty to forty five year olds, there is information emerging that attitudes in the UK towards renting your own home as opposed to owning it have softened, showing more and more, that renting is being seen as a life style choice.  In fact it is recognised in learned circles that the cycle of renting is also repeated by the fact that people who grow up primarily in rented accommodation are themselves more likely to rent than buy.

The biggest barrier often mentioned to buying a house is the claim that they are not buying property at the moment because of a lack of sufficient wages and by the high level of deposits but like we said a few weeks ago, in Clacton, if a couple, one  on the average Clacton salary of £23,784 pa and the other on the Minimum wage, assuming they had a reasonable credit history they would be showered with lenders offering them a 95% mortgage (a reasonable credit history means they haven’t defaulted on loans, paid all their bills on time nor got any County Court Judgments.

Just because you missed just one credit card payment won’t mean you have messed up your credit score and your ability to get a mortgage) and they would only need to find £7,500 as a deposit to buy a decent semi detached house in an up market area of Clacton or a good honest 2/3 bed terraced villa in the town (depends if you space (terraced) or bigger gardens – semi). ..It comes down to the perceived capability of the youngsters in Clacton to buy nowadays.

Interestingly, when I looked at the Clacton figures, the average Clacton tenant has an older profile (especially the 50 to 64 year olds) than the English and Welsh average, as can be seen from the graph below. I know we have a large number of mature tenants at our agency, but I always thought that was the exception to the rule. Obviously not!  (And that is good news for landlords as they make excellent tenants)

So what does all this mean for Clacton landlords and future Clacton landlords? I honestly believe there is a difference between the hope and perceived capability of the younger generation to buy a home. Although homeownership is seen as advantageous by a majority, many tenants admitted in the Halifax report they are not taking the steps they need to purchase their own home.

As the local authority aren't building any properties in Clacton, people still need a roof over the head, and that is why, as I mentioned a few weeks ago in the Clacton Property Blog, the demand for rental properties will only continue to steadily rise in the coming decade. 

If want to know where the Clacton Property market is heading and where you should (and shouldn’t buy), maybe the one place you should visit is the Clacton Property Blog www.clactonproperty.blogspot.co.uk or send me an email to craigdavis@moreestateagents.co.uk