Buying your own home is one of life's biggest achievements. There's truly nothing more satisfying than finally arriving at this milestone. Of course, there's no denying that it's not an easy road to get there for most people. It's considered such an accomplishment because sometimes it can prove to be quite challenging to achieve for most people. Additionally, even when you do have the funds to take that big step finally, it can be hard to find a property in a place that fits your criteria and is also affordable.
But for people in the UK, a lot of things are about to change. Sooner rather than later, more people will have opportunities to buy a home. Today's article will be discussing things you need to know to prepare.
If you are looking for the most affordable places to live in the UK, here's your guide:
Current Housing Market
The government has been working on plans to build more affordable housing in recent years. A lot of this will be achieved by making a number of changes. These changes will include introducing more affordable homes in more areas and lowering the costs for buying and renting.
By 2022, it's estimated that the number of houses being built each year will increase to 220,000. This is an increase from the 2016 figure of 188,000 homes.
In addition to this, it's estimated that by 2022, there will be 1.3 million affordable homes available. This is a massive increase from the 2018 figure of 540,000 affordable homes.
What does this mean for first home buyers and those who want to buy their own homes? It means that by 2022, more opportunities will exist for people to buy a home of their own. Not only that, but homeownership will become more affordable like never before.
With the number of new homes being built annually increasing, due to the changes mentioned above in the housing sector, there's been a decrease in the overall number of people renting. This is mainly because there are more opportunities to buy at a lower price. For many, this will mean that they can avoid paying big money to landlords.
However, this doesn't mean that prices will remain the same. In fact, it's expected that prices will also fall. This is because the housing market will swing from a seller's market to a buyer's market.
A report from the BBC stated that in the year 2013, there were 22 buyers for every one piece of property for sale. In 2016 this figure rose to 28 buyers for every one piece of property for sale. And in just three years, it's expected that this figure will reach more than 33 buyers for every one property for sale. This will create a real opportunity for those looking to get their own home.
House Prices
These changes in the housing market will lead to changes in house prices. It's expected that house prices will fall in the coming years. This will make owning a house more affordable than ever before.
According to the report, by 2022, private renting will cost £1,185 per month. This figure is expected to increase to £1,618 per month by 2026. In contrast, the average monthly housing cost of an owner-occupier will be £904 per month. This is a massive difference.
What's great for first time home buyers is that in the year 2022, first-time buyers will be able to cover their mortgage payments using their gross salary plus the housing cost savings.
What also needs to be taken into account is that in 2022, the average first-time buyer will not have to pay council tax and stamp duty. This will save them £2,500 per year.
Wage Increase
Another reason to be optimistic about buying a house in the UK is that wages will increase by the year 2022. According to the Bank of England's quarterly inflation report, wages are expected to increase by 4.3%. This is likely to happen in the year 2021. Additionally, in the year 2022, wages are expected to increase by 3.5%.
This will mean that the average UK worker will earn £26,000 per year. This is higher than the current figure of £24,000. With wages increasing and house prices falling, the average UK worker will be able to buy the average house in just over 7seven years.
Affordable Places to Live
In the year 2022, the most affordable places to live in the UK are expected to be:
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The South East
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The South West
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East Midlands
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North East
In the coming years, there will be a lot more affordable places to live in the UK. This is because more affordable homes will be built, and house prices are expected to fall. Therefore, if you're a first-time buyer or a person who lives in a place that you feel is too expensive for you, you might be happy to hear all about the changes taking place.
First-time buyers will likely have more opportunities to get themselves into a home that better suits their needs. And all buyers will be able to get better value for their money.
Future of Renters and Homeowners
A lot has been said about millennials and their struggle to find their own home. However, so far, all of the statistics are pointing in a positive direction. With lower house prices, higher wages and more affordable places to live in the UK, 22-year-olds will be able to buy their own home by the time they are 33.
The same can be said for those who are 30, 33 and even 52 years old. There will be more opportunities to buy homes for all these people, and the homes will be more attainable.
For renters, this could be great news. Those who are currently renting and looking to buy can be assured that their rent will be lower than in the past. And by 2022, it's expected that their mortgage payments will be the same as their monthly rent. This means that they'll be able to save money to put towards a deposit.
Conclusion
For people in the UK, there will be many changes ahead in the next few years. Not only are more affordable homes going to be built, but the price of housing will fall.
This means that owning a house is going to be more affordable than ever before. For those struggling to get their hands on a home in the past, the future is looking quite bright. It's expected that in the year 2022, it will be easier to get a home loan. This means that more people will have the opportunity to own a home.
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