14 Feb 2019
More than a million young men and women in age 15 to 34 are living with their parents as per an analysis by the Think tank Civitas. In 1999, 35 percent lived with parents, and in 2017, 40 percent in the age group, 15 to 34 are living with their parents. The household size diminished and the number of homes per capita was increasing but in the last decade, the trend reversed where children are choosing to live at home for a number of reasons which includes financial pressure, lifestyle and cultural goals. Private rents are becoming unaffordable for the average working class as the house price is approximate, 8 times the average earnings. Not only young Britons but even young Americans are living back with their parents where one in five men in age 25 to 34 lives with their parents, and one in eight women stay back in parent's home.
New recommendations for empty Home Taxes
A study was conducted at University College London tried to find a relationship between properties with no permanent residents and affordability. The study suggested some of the low use properties in some unaffordable regions, which are bought as holiday homes or second homes or for investment purpose, are becoming expensive in comparison to full-time resident properties. Some of the low use properties are more expensive in comparison to permanently occupied homes. The study found 38 to 47 percent of the population lives in such regions where empty properties are expensive. The low use properties are of average worth £363,000 – that is 18.5 percent more as compared to average home price (£306,000), and the implementation of empty home taxes can promote the owners to rent out such properties.
The study claimed houses worth £123 billion is not used in Britain and the implementation of taxes on second homes can force the owners' of second homes to rent their properties. The research was conducted on one-third of local authorities in the country covering 40 percent of the population and it found nearly 340,000 homes were seldom used.
Most such properties were in London, the South West and Kensington, where property worth £21 billion remained underused. Currently, only four in ten people live in areas, where the average value of the low-used property is higher than permanently occupied.
Growth Declined in January
January is the most difficult month for home sellers and uncertainty related to Brexit is putting off some of the potential buyers. The RICS outlook for housing prices for the coming months and the impact of Brexit issues show the property values fell in most part of England but gained in Scotland, Northern Ireland, and Wales. Affordability and increase in taxes on investment properties restricted, further, buying from overseas.
Halifax January report claim after the gain of 2.5 percent in December 2018, housing grew 0.8 percent in the year to January that is 1.3 percent down from December gains and now, the average house price in the UK stands at £223,691.
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