23/03/2017
SurreyLets are pleased to be bringing to the market for the first time,  an individually designed detached home situated in the highly sought aft ...read full article
 
Member of ARLA and The Property Ombudsman
LetsWithPets
MARKET APPRAISAL REQUEST
 
 

Why are people renting opposed to buying in affluent Surrey villages?

19/09/2016

The proportion of people who own their own home has fallen across every part of the UK since their peak in the early 2000s


The actual number of people in the UK who own their own home hit a historic low last year, when the rise of generation rent meant that fewer people were choosing to buy, instead remaining in rented accommodation and putting strain on the rental market that has been suffering a shortage of supply over recent years. Home ownership in England has fallen to its lowest level in 30 years as the growing gap between earnings and property prices has created a housing crisis that extends beyond London to cities and towns UK wide. Surrey Letting Agent, SurreyLets says this is evident in the number of people renting family homes in the area opposed to buying



“Even with good salaries and healthy deposits, the house prices have risen so much it simply isn’t possible to achieve the multiples on earnings or the large deposits needed to purchase a property in the affluent Surrey villages. It is much cheaper to rent. We are seeing a growing number of tenants renting their main home whilst using their salaries and savings to make wise Buy-to-let smaller investments”



Since the 90’s and into this millennium,   home ownership rose as purchasers were able to take out mortgages with no deposit (or a small deposit) got on the housing ladder.  According to the Nationwide Building society, property was growing at the rate of 20% a year and banks were keen to lend. However, after the credit crunch in 2008 and the tightening of borrowing has seen an end to self certification mortgages, zero deposit mortgages and sensible multiples against salary, properties are simply becoming less and less affordable for people to buy.


To give an example:


A married couple in Effingham, Surrey, solicitors earning 41K each with a take home monthly of 2800pm could obtain a mortgage IRO of £252- 378K av 315K.  Taking a 95% mortgage a deposit of £17500 is needed to purchase a property with a value of 332K if they borrowed 315K.


What 332K will get you in Effingham, Surrey?


At the time of writing there are no properties in this price bracket in Effingham, but if we extend the search a mile we find a one bedroom started house in Edenside Bookham  for £335K  or a 2 bedroom flat in Great Bookham at 335K


Renting or buying?


To rent the one bedroom house in  Edenside Bookham would cost £875pcm a month in rental opppsed to a mortgage on £315K  at a 3% rate costing £1493pm.** The benefit as a tenant is you are not paying for maintaining the property or insuring the buildings. The negative is no equity long term. 
Given that houses  (not flats) in East Horsley start at around £500K a couple moving to the area would need to be earning jointly in the region of 140K **with a 40,000plus deposit to get onto the housing ladder.  However the same couple could afford to rent up to £4,500pcm (according to affordability calculator used by Experian) which may answer why so many families moving into the area are choosing to rent their family home and buy Buy-to-Let properties to get on the housing ladder.


**figures above obtained using the calculator on the money advice service website


Home ownership across England peaked in April 2003, when 71% of households owned their home, either outright or with a mortgage, but by February this year the figure had fallen to 64%, according to the Resolution Foundation.


 



View all News
 
SurreyLets is a specialist and dedicated Letting Agent specialising in Residential lettings and Property Management. We are based in East Horsley and cover the Guildford to Leatherhead corridor and all the villages and towns in between. Our properties are a selection of Surrey's finest homes, family homes and flats apartments and annexes. In Surrey there is demand from a plethora of tenants requiring anything from studio apartments through to corporate lettings and fine Traditional Surrey Homes.
Are you looking to Let your Property or to Rent a property in Surrey?

SurreyLets is a specialist letting agency covering the Guildford to Leatherhead area and specialises in property across Surrey for rental. SurreyLets have houses and flats for rental in the Guildford to Leatherhead area

Do you have a property to let?

Surreylets require property to let in the Cobham and Esher areas, Property to Let in East Horsley, West Horsley and Effingham areas, Property to rent in Guildford and Property to rent in Leatherhead, The Bookhams and Fetcham. Surreylets also let properties in Weybridge and Walton on Thames.

Surreylets constantly require family home, executive homes, flats and annexes to let in all Surrey Villages and would be delighted to offer you a free appraisal of your home and to discuss SurreyLets specialist Landlords Services.

If you are a new Landlord, please look at SurreyLets testimonials and read through the Landlords Guide to Letting. SurreyLets have a wide range of properties to let, to view those currently available please look at out Properties to rent section.

Are you looking for rented accommodation?
Are you looking for...