HouseDrive - YouDrive Thinks...

We're getting our first home together - I think we'll
definitely rent, save up to buy
our new home

This is a key decision – for some the most important financial decision they might make.  It can be life-changing – it certainly can cause a huge amount of commitment.  The information below is based on what’s happened in the UK housing market in the last 10 years, and might help you to make a decision.

Renting

House Prices

The average house price over the last 10 years taking inflation into account has fallen from £234,753 to £223,257.

It’s also affected by geography – in Northen Ireland it’s fallen by more than 40% in 10 years.

There are 30% less sales now than 10 years ago, which tells you something!  Younger people are certainly renting more.

There’s a lot less housing available, as people aren’t moving up the chain so much, and also lenders are more demanding in terms of security and income.

Deposits are difficult to find, as they are rising faster than incomes (12x in London, 4x faster in Wales).

Also, interest rates have been low for years, but there are signs of increases pending.

Buying

House Prices

The average house price overall excluding the effect of inflation has risen from £186,348 to £223,257 over the last 10 years.

In London this average property value has risen by nearly 70% in 10 years.

The number of first time and cash buyers hasn’t changed that much in 10 years.

Although higher than 10 years ago, the first time buyer deposit as a %-age of income is 30% lower than during the peak in late 2008.

Changes to work patterns and remote working  increases flexibility in where people live.  There are regional disparities which mean there are better places to buy.   In Northern Ireland deposits have fallen faster than incomes (19x!).

YouDrive thinks....

This is one area where the best option is totally down to personal circumstances.  Look through our information and see what matters most to you.  Assuming you have registered with us, you can download an Excel calculator from our More Info section below or you can use a simple online calculator here

You can either go back to HouseDrive by clicking the first button below, look for further information by following the links at the bottom of the page, or look at another Drive.

People who looked at HouseDrive also looked at BudgetDrive and MortgageDrive.

You’ve seen more detail on the different points of view, and also what YouDrive’s view is.  You can go back to HouseDrive by clicking the button here.

More information

General advice on buying a home from Money Advice Service

Overall advice on housing issues from Citizens Advice

Information on council housing and housing associations from the government

See how to apply for council housing – from Shelter

If you’re a single parent, the Gingerbread have information on your housing options

Different types of mortgage available from the Money Advice Service

Calculate your monthly mortgage payment using our Money Advice Service calculator

See if you can afford the repayments using our calculator provided by the Money Advice Service

How much is Stamp Duty?  This calculator from MAS lets you work it out

Equity release comparison from Age Partnership – click here to go to their site

Buy to Let guidance from Which

You can download your own Excel calculator which allows you to model whether it’s better to rent or buy there’s one from Excelexperts.  There are two – one with blank values which you should use, and one with example values entered. The third button will open a YouTube video explaining how to use the calculator

Download the Royal Institute of Chartered Surveyors (RICS)  Housing Survey for 2019

If you are getting older and you’re thinking about your options of whether to move or stay where you are, or where to live, AgeUK have a useful guide you can download.

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