First-Time Buyer’s Plans Postponed By Pandemic

More than four out of ten aspiring first-time buyers delayed their plans to get onto the property ladder in 2020, research by Santander suggests. The lender found that 44% of first-time buyers put off their purchase during the pandemic. However, 63% of would-be buyers say that home ownership is even more important to them now than it was before Covid. The proportion of first-time buyers who say raising a deposit is the biggest barrier has risen from 30% in 2019 to 52% in 2021. Read more on the Mortgage Strategy website.

First-time buyer's plans postponed by pandemic | Mortgage Strategy 

Deposit Returns As Biggest Worry For Homebuyers

Raising a deposit is seen as the biggest obstacle in buying a property for the first time in nine months, the Building Societies Association’s latest survey shows. Its quarterly property tracker describes 59% of the over 2,000 UK adults asked citing this as the main barrier, up from 54% in December 2020 and 40% in the preceding June. Previously, job insecurity was seen as preventing property purchases – in December, 65% of respondents gave this reply versus 45% in June – a figure the BSA says is nevertheless important to not downplay. Read more on the Mortgage Strategy website.

Deposit returns as biggest worry for homebuyers: BSA | Mortgage Strategy

Government U-Turn On Tenant Deposit Cap A Loss Of Faith Say Landlords

Reducing the proposed cap on security deposits would make securing a tenancy harder for many. Responding to reports that the Government is to do a U-turn on its decision to cap tenancy deposits in rented housing at six weeks and reduce this to five, a spokesman for the Residential Landlords Association said: “If this is true, landlords will feel badly let down by a Government which says it wants to support good landlords. The Government had accepted that a cap of six weeks was the minimum many landlords require. This is needed to address the problem of tenants who fail to pay the last month's rent and leave a property damaged.” Read more on the RLA website.

https://landlords.org.uk/news-campaigns/news/government-u-turn-on-tenant-deposit-cap-loss-faith-say-landlords

Worries Among Tenants Over Deposit Return

Nearly a fifth (18%) of tenants renting from private landlords say they have waited more than three months to get a deposit back, according to a survey. Mortgage lender the Nationwide said 4% of those asked had a delay of more than six months. A leading deposit protection scheme says the money should be returned within 10 days of the tenant requesting it after they move out of the property. A landlords' group suggested disputes could slow down these refunds. Read more on the BBC website.

https://www.bbc.co.uk/news/business-45916360

Over £1bn Of Tenancy Deposits “At Risk”

New research has revealed that a possible 1,500,000 renters could be at risk of losing their deposits believing their bond has never been placed in a deposit protection scheme. The survey, carried out by price comparison website, Comparethemarket.com, has suggested that renters in 33% of the UK’s 4.5m rented homes think that their landlord has not placed their money into a compulsory deposit protection scheme (DPS). This equates to in the region of £1,200,000,000 of deposits which could be unprotected. Read more on the propertyreporter website.

http://www.propertyreporter.co.uk/landlords/over-1bn-of-tenancy-deposits-at-risk.html

Government Urged To Change ‘Unfair’ PRS Deposit System

A new report calling on the government to change the way to the deposit system is run in the private rented sector has found that the average renter loses over £300 per tenancy. As part of the report, polling by YouGov has shown that 43% of renters would support a system of deposit replacement insurance with a small cost rather than the current system of tenants paying large upfront deposits. Forcing tenants to pay large up-front deposits mean many people struggle to move between properties. They also lose out on accruing interest on their money which instead is retained by their landlord or letting agency, and often face a real struggle to receive their money back. Read more on 24housing.

https://www.24housing.co.uk/news/government-urged-to-change-unfair-prs-deposit-system/

Millennials In London Are 'Hiring Cleaners Instead Of Saving Up For A Deposit'

London millennials are spending money on cleaners instead of saving for a deposit for a new home, a new study suggests. Sixteen per cent of under 35s have a cleaner, compared to 9 per cent of older age groups, according to the study commissioned by app Airtasker. The study also found Londoners are the laziest people in the UK, and London itself is the most 'time-poor' part of the country. Many young Londoners admitted to not having enough time to clean, while some find housework simply too boring, the study found. Read more on the Evening Standard website.

https://www.standard.co.uk/news/uk/millennials-are-hiring-cleaners-instead-of-saving-up-for-a-deposit-a3863341.html

Labour Seeks Law Change To Reduce Maximum Deposit

Labour is seeking to change the law to significantly reduce the amount that landlords are allowed to charge renters as a deposit. The party wants to amend a new law in order to cap the maximum deposit at three weeks’ rent – an average of £575 for renters in England. Under government proposals currently before Parliament, the maximum deposit landlords could charge would be limited to six weeks’ rent – meaning, on average, £1,150. Labour claims the government’s six-week limit would do nothing to help most tenants, because the average deposit is already less than five weeks' rent. Read more on the Independent website.

https://www.independent.co.uk/news/uk/politics/labour-rent-deposit-landlords-maximum-law-change-housing-jeremy-corbyn-a8386221.html

Changes To Draft Tenant Fees Bill Make PRS ‘More Affordable’

Banning fees imposed on tenants by landlords and lettings agents in the private rented sector has the potential to save renters hundreds of pounds – but the proposed legislation could be improved to make the market both fairer and more transparent, the HCLG Committee has concluded. A report on the Government’s draft Tenant Fees Bill welcomes the aims of the proposals but recommends the maximum amount that can be charged as a security deposit be lowered from the proposed six weeks’ worth of rent and calls for more funding for enforcement. But Residential Landlords Association (RLA) believes lowering the cap makes it easier for the minority of tenants who cheat landlords out of the rent they owe. Read more on 24housing.

http://www.24housing.co.uk/news/changes-to-draft-tenant-fees-bill-make-prs-more-affordable/

Report Reveals Renters Lose £80m A Year To Deposit System

Private renters in England and Wales are missing out on £80m per year in interest on their tenancy deposits as landlords and letting agents are “help themselves”, new research reveals. Analysis by Generation Rent and a University College London (UCL) academic calls on the Government to reform the deposit protection system to:

·         Make the funds available to invest in building new homes

·         Give renters a return on their money while it is locked away

·         Enable renters to transfer part of their deposit between tenancies

Read more on 24housing.

http://www.24housing.co.uk/news/report-reveals-renters-lose-80m-a-year-to-deposit-system/

First-Time Buyers Are Seven Years Older And Pay 30 Times More For A House Deposit Than In 1960s

The average first-time buyer is now seven years older than in 1960 - and needs to save more than £20,000 extra to be able to buy a home, a study commissioned by Keepmoat Homes has found. Researchers who polled 2,000 adults found a huge difference in the profile of someone buying their first home through the generations. For example, today, first-time buyers will be in their thirties before they get onto the property ladder and pay £20,622 for a deposit. In comparison, in 1960, the average first-time buyer was just 23 years old paying a deposit of just £595 on their first home, 30 times less than the average deposit today. Read more on the Keepmoat website.

http://www.keepmoatcorporate.com/news/firsttime-buyers-are-seven-years-older-and-pay-30-times-more-for-a-house-deposit-than-in-1960s

The Cost Of Renting A Property Will Fall – But Not Until 2019

Everyone knows that saving for a deposit to get onto the property ladder is an insurmountable challenge for many, but private renters are also stung by having to fork out huge amounts of cash at the outset.  Would-be renters have a number of costs to take into account before they can think about getting the keys, including up to two months’ rent as a deposit, the first month’s rent in advance, as well as letting fees imposed by the agent. With UK rents now averaging around £1,196, according to research from Landbay, this means that some tenants could be forced to stump up as much as £3,588 in advance to secure the property, plus letting agency fees of an average £200-300 per tenant. Read more on the buyassociation website.

78% Believe They’ll Never Be Homeowners.

A survey of Brits aged 18 to 30 years old has revealed that 78% of this age group do not believe they will ever be in a position to own their own home. The main stumbling blocks are the deposit, earnings and credit history. British adults have an average of £6,700 saved up for their deposit. Considering the average house price stood at £225,021 in December this average savings amount is less than 5% – the minimum deposit percentage for most first-time buyer mortgages – of what could be required. It's therefore understandable that 78% of those who don't believe they'll ever own their own home said it was because they could never save enough for a deposit. Read more on the moneyfacts website.

First Time Buyers Underestimate Cost Of Buying A Home

There is a real lack of understanding around the house buying process and the associated costs amongst those looking to buy their first home in the UK, according to new research. Nationally first time buyers underestimate the deposit they need by £15,388 or 31% but this rises to an underestimate of £75,000 for people buying their first home in London where prices are so much higher than other parts of the country. The first time buyer index report from Aldermore also shows that a deposit is the top obstacle for 34% of first time buyers while 40% overspend by £2,334 on other costs such as solicitors and home surveys. Read more on Property Wire.

Major UK Landlord Scraps Rental Deposits

Rental home operator Get Living is to scrap security deposit requirements for new residents from next month. Security deposits will be returned to current residents from July, in a move that will see around £3m released back into the UK economy. Neil Young, CEO of Get Living, said: “We know that the cost of living can be high so, as a responsible landlord with a long-term perspective, it is important for us to be able to identify and address areas where we can alleviate the burden on our residents.” Read more on 24housing.

New Home-Buyers Could Need £23,000 To Get Onto Property Ladder

People aspiring to get on the property ladder across England and Wales could find themselves needing more than £23,000 for a deposit and moving costs, according to Office for National Statistics (ONS) data. The ONS has placed a new affordability calculator on its website, which allows would-be home-buyers to see what level of household income they might expect to need to get a mortgage on an "entry-level" property in their neighbourhood. The ONS said that with the average cost of an entry-level home in England and Wales being £140,000, prospective buyers could require £300 stamp duty, an estimated £2,000 for legal and moving costs and £21,000 for a 15% deposit, coming to £23,300 in total. Read more on the Belfast Telegraph website.

Proportion Of 25-Year-Old Homeowners Halved In 20 Years

Home ownership rates among 25-year-olds have plummeted by more than half in 20 years, council leaders have warned. New analysis for the Local Government Association reveals almost half (46 per cent) of all 25-year-olds owned their home 20 years ago. In a generational shift, only 20 per cent of 25-year-olds are on the housing ladder today. With access to housing to buy increasingly limited to future generations, the LGA insists homes for affordable or social rent are vital to help more families afford to save up for a deposit to buy a home. Read more on the LGA website.

Under-35s Put Saving For A Home Ahead Of Saving For Retirement

Almost a quarter of under-35s are more concerned with putting money aside for a deposit to buy a home rather than pay it into a pension pot. Nottingham Building Society (NBS) said that 24% of this age group was more focused on saving for a home than saving for retirement, with only 8% targeting pensions. Research shows that 34% of under-35s are either saving for the first home or to move home, compared with 18% of the population as a whole. Retirement saving is the main saving and investing priority for the population as a whole with 24% selecting it ahead of 23% who say having cash for unexpected bills is their main priority. But it only becomes the major priority when people reach the age of 45. Read more on the Housing Excellence website.

Help To Buy Closure Will Not Affect Those With Small Deposits

The Bank of England has told the government that its flagship scheme which has helped more than 79,000 buyers on to the housing market can be closed without any impact on the supply of home loans. Help to Buy was announced in March 2013 by the then chancellor George Osborne with the aim of encouraging lenders to provide mortgages requiring deposits worth 5% of the value of a property at a time when they were demanding bigger deposits. The scheme is scheduled to close at the end of this year, and the Bank’s governor, Mark Carney, has told Osborne’s successor, Philip Hammond, that its closure would not affect customers with small deposits. Read more on the Guardian website.

Thinktank Calls For 75,000 "Living Rent" Homes A Year

The Government should build 75,000 homes a year aimed at low paid workers, a think tank has argued. Renewal said the Rent to Buy model should be scaled up and rents reduced to allow people to save for a deposit.  Living Rents would be set at no more than one-third of the average low income in an area. Properties would have a five to 10-year tenancy as a minimum to provide "security and stability, while still encouraging mobility and efficiency in the use of stock. After two years, tenants would have the option of buying their home at a discount similar to those offered under Right to Buy. This would be facilitated through an extension of Help to Buy-style equity loans. Read more on the Housing Excellence website.