What Property Reforms Do Homeowners Want to See?
The housing market is a turbulent one, house prices and rent are dictated by numerous factors and the constant changes to housing legislation and laws make it a challenge to keep up. Generally, a lot of people are unhappy with the state of the housing market and are keen to see some positive change being made across a multitude of areas.
Below are the key areas across which many homeowners would like to see changes implemented.
Renting or Buying
Younger generations are struggling to purchase property due to the financial implications of a deposit and mortgage, therefore choosing to rent instead. Over the last few years, there have been several help-to-buy schemes implemented as property reforms to try and help people save up for a deposit. However, more could still be done.
Due to the high demand of the market, many of these people may get dragged into bidding wars and may struggle to secure a property when up against someone with more financial sway.
A surprising number of properties in the UK are entirely derelict. These properties are neither on the housing market nor suitable to live in. The Property Reported magazine had revealed that the number of empty homes in the UK sits at a substantial 288,539.
Just to give a general overview, there are an estimated 230,000 households across Britain that are currently experiencing homelessness. If there was a property reform that implemented an incentive for people to renovate these properties and then place them on the market, this would bring down property prices due to lower demand and may help to provide homes.
An estimated 1 in 10 people in the UK own a second property, millennials (those born after 1981) make up only 3% of those that own a second property. This highlights the wealth gap between the generations and their strength in the housing market. In fact, only 31% of UK millennials are reported to own any property at all.
Due to the rising costs of living and the fragile house market, buying a property without substantial financial backing is -for many- an insurmountable challenge. There are many who would like property reforms to be implemented to either put a cap on the number of properties that can be owned by a single person or to give homeowners incentive to sell to first time buyers.
The current inheritance tax ceiling is a property worth £325,000 and any property inherited that is over this value is then taxed at 40% of the difference. When dealing with multiple properties or a single substantial high value one, the amount of tax to pay can shoot through the roof leaving the inheritor in a precarious position of having to muster the funds from elsewhere or selling the property/properties they have just inherited.
Many wealthier homeowners aren’t particularly keen on this rate of taxation and are keen on reducing or abolishing the tax altogether as a part of a property reform.
Contact Hadleigh Estate Agents for Properties To Buy or Rent
If you’re looking for a property to buy or rent in Birmingham, then please get in touch with our property experts. With years of experience in the rental market, we are a market leader in the Harborne and Edgbaston areas.
Our friendly, experienced, and qualified team of estate and letting agents like to take the time to understand your needs to find out exactly what you’re looking for in a property.
Call our lettings team on 0121 426 3220 or you can send us an email here.