Local property market information for the serious investor

Will the young people of Cardiff Bay ever own their own home?

I had the most interesting chat with a mature couple (in their early/mid 50’s) from Llandough the other day, whilst viewing one of our rental properties. The property wasn’t for them, but their son, who wanted a second viewing with his parents to get the parental blessing. Now I know that isn’t the norm, but in this case the parents were going to act as guarantor. We got chatting about the Cardiff Bay property market and how they had bought their first property in the area just after they got married in the late 1980’s when they were in their early/mid 20’s. Anyway, we got chatting about how the youngsters of the UK seem to rent more than buy nowadays and from that the conversation covered a number of similar topics. I want to share the highlights of that conversation with you today.

Their son, like many 20 to 30 year olds in Cardiff Bay, desperately wants to own his own property and the parents said he had read in the Telegraph recently, when you compare house prices to earnings, the current 20 to 30 something’s generation have to spend more of their salary in mortgage payments than any previous generation. The demand for private rental sector accommodation in Cardiff Bay is huge. There are in fact 30,042 private rental properties in Cardiff Bay at the last count, impressive when you consider there are 13,354 council houses in the area. However, let us not forget 80,965 properties are owner occupied (44,069 with a mortgage).

Let us all be honest, private renting doesn’t have the stigma it had a few decades ago and it might surprise people that even though us Brit’s class ourselves as a nation of homeowners, roll the clock back 100 years and over 75% of people rented their own home (and it was all from private landlords as council housing only started to come in with the ‘homes for hero’s’ after the first World War). It might also surprise you to learn that at the time of the 1971 census, still more people rented than owned their own home.

Looking at the affordability issue, I have proved time and time again, it is in fact cheaper to buy a property than rent, when one looks at starter homes for first time buyers. 95% mortgages have been available to first time buyers for over four years and whilst you could certainly find better properties in better condition in better areas, terraced houses can be bought for as little as the mid £130,000’s in the Ferry Road area of Cardiff Bay (meaning a modest deposit of £6,500 would be required).

When it came to affordability, I was able to tell them that when they bought their first house in Cardiff Bay in 1988, the ratio of house prices to salary was 4.26 to 1 in Cardiff Bay … and here was the surprise for both of us, today’s ratio is only 4.87 to 1!

I said I believed there had been a cultural attitude change towards renting property in Britain and that this quiet revolution was likely to be permanent. In the 60’s, 70’s and 80’s, saving for the deposit was everything and buying a house was everything. Youngsters today have far much more disposal income today than people had in the Callaghan and Thatcher years, but choose to spend it upgrading their mobile phones every 12 months, the newest tablet or PC, a newest 50” plasma LCD TV and two sun drenched holidays a year, than go without and save for a deposit.

Yes, there are horror stories of tenants living in rat infested properties with landlords who charge massive rents and don’t repair their properties. But that is very much the exception as most tenants rent homes of a quality they couldn’t ever to afford to buy. Twenty years ago, if you said you rented a property, you were considered the lowest of the low … but now it’s the norm.

So with mortgage affordability being well within the bounds of most first time buyers, the level of deposit required for a 95% being surprisingly modest (starting off at c.£6,500 in Cardiff Bay as mentioned above) until we change our attitudes, the UK housing market is slowly but surely turning into a more European model, where people rent for long periods of their life, then eventually inherit their parents properties and subsequently become homeowners themselves, albeit later in life.

Hence, I cannot see the demand for decent, high quality rental properties ever dropping in the next 10 to 20 years, but only ever increasing as the population continues to soar. Just make sure you by the right property, at the price, in the right location.

Kate Gwinnutt

View more posts from this author
31 thoughts on “Will the young people of Cardiff Bay ever own their own home?
  1. payday loans

    A lot of thanks for all your efforts on this site. Gloria loves engaging in investigation and it’s easy to understand why. Almost all know all concerning the dynamic means you give important secrets on the web blog and as well encourage contribution from others on that concern plus our daughter is always discovering a lot. Have fun with the remaining portion of the new year. You’re the one conducting a good job.

     
    Reply
  2. sildenafil price

    I am commenting to let you know of the fine encounter my friend’s daughter found reading your site. She figured out many issues, not to mention what it’s like to have a wonderful giving mindset to have men and women with no trouble learn about specific specialized things. You undoubtedly surpassed readers’ expected results. Thanks for providing those productive, trusted, informative as well as unique tips on your topic to Mary.

     
    Reply
  3. cheap viagra

    Thank you for every one of your labor on this web site. My daughter really loves managing investigations and it’s really obvious why. Most people learn all regarding the lively mode you present rewarding techniques through this web site and even inspire participation from some others on the point then our favorite princess is really starting to learn a whole lot. Take advantage of the rest of the year. You are always doing a splendid job.

     
    Reply
  4. aripiprazole buy

    I simply wanted to thank you so much once more. I do not know what I would’ve taken care of without these tactics shared by you regarding that subject. It was actually an absolute intimidating problem in my position, nevertheless taking a look at this specialized tactic you solved the issue took me to leap with happiness. I will be happy for your service and thus sincerely hope you really know what an amazing job you have been putting in teaching some other people using your webblog. Most likely you haven’t got to know any of us.

     
    Reply
  5. ABILIFY online

    I’m just commenting to let you be aware of of the fabulous discovery my cousin’s daughter experienced going through your site. She even learned lots of issues, most notably how it is like to have a very effective giving mindset to have many others just gain knowledge of chosen grueling matters. You really did more than our desires. Many thanks for distributing the important, healthy, educational and as well as easy thoughts on the topic to Gloria.

     
    Reply
  6. fluvoxamine buy

    I am just writing to make you understand what a perfect experience my wife’s girl obtained using your webblog. She noticed so many pieces, which included what it is like to possess an excellent helping spirit to let others with no trouble learn about specific specialized things. You truly surpassed readers’ expected results. Thank you for providing these priceless, trusted, informative as well as fun tips about this topic to Lizeth.

     
    Reply
  7. generic mirtazapine

    My spouse and i got really joyous that Jordan managed to do his reports through your precious recommendations he had through the web pages. It is now and again perplexing to just find yourself handing out secrets and techniques which people may have been selling. So we keep in mind we have got the writer to give thanks to for that. The most important illustrations you have made, the simple web site navigation, the relationships you will help to foster – it’s got many overwhelming, and it’s really leading our son in addition to the family know that the situation is exciting, which is rather mandatory. Thank you for everything!

     
    Reply
  8. retro jordans

    I intended to post you a tiny observation just to say thanks a lot yet again with your nice tips you’ve contributed in this case. This is really extremely open-handed of people like you to allow unreservedly precisely what a few people would have supplied for an ebook to help make some dough on their own, most importantly seeing that you could have tried it in case you wanted. These tricks in addition acted as a good way to fully grasp the rest have the identical dream like my personal own to grasp a good deal more around this problem. Certainly there are a lot more fun times up front for those who looked at your website.

     
    Reply
  9. nike sb

    I must point out my passion for your generosity in support of individuals who actually need assistance with this important area of interest. Your very own dedication to getting the solution throughout had been particularly functional and has frequently enabled guys just like me to achieve their pursuits. The interesting tips and hints can mean a great deal to me and especially to my peers. Thanks a ton; from all of us.

     
    Reply
  10. kevin durant shoes

    Thanks a lot for providing individuals with an extraordinarily spectacular opportunity to read critical reviews from this blog. It is always so sweet plus packed with fun for me and my office colleagues to visit your site not less than 3 times in one week to read through the fresh guides you have. Of course, I’m so certainly impressed for the striking things served by you. Selected 1 tips in this posting are particularly the most efficient we’ve ever had.

     
    Reply
  11. steph curry shoes

    I simply wanted to write down a brief remark in order to say thanks to you for the magnificent tips and hints you are posting on this website. My prolonged internet research has finally been recognized with incredibly good facts and techniques to exchange with my close friends. I ‘d assert that we visitors are rather endowed to dwell in a really good website with very many wonderful people with beneficial suggestions. I feel really happy to have used your website and look forward to many more amazing times reading here. Thanks once more for all the details.

     
    Reply
  12. russell westbrook shoes

    I wanted to write you this very small observation to thank you over again on your precious suggestions you have shown in this case. This has been pretty generous with people like you giving unreservedly just what a few individuals would have supplied as an e-book to help with making some bucks on their own, notably since you might well have tried it in case you wanted. These thoughts in addition worked like the fantastic way to realize that other people have similar desire just like my own to find out much more when considering this issue. Certainly there are a lot more pleasant moments up front for many who scan through your website.

     
    Reply
  13. authentic jordans

    I intended to create you the very small note to help give many thanks the moment again about the incredible basics you have contributed on this site. It has been simply shockingly generous with you to offer easily all a few people would have offered for sale for an e-book to earn some profit for themselves, mostly now that you might have done it if you wanted. Those strategies in addition worked to become a easy way to comprehend other people have the same dreams just as my own to find out way more around this condition. I think there are numerous more pleasurable opportunities in the future for people who looked at your blog.

     
    Reply
  14. supreme

    I simply wished to thank you so much once more. I’m not certain the things that I would have worked on without the concepts revealed by you regarding this situation. It had been a real depressing problem in my circumstances, nevertheless considering the specialized way you resolved it took me to leap with gladness. I’m happier for this assistance and even hope you comprehend what a powerful job you were putting in educating people all through your website. Most likely you have never met all of us.

     
    Reply
  15. supreme hoodie

    I am commenting to make you understand of the beneficial experience my girl found visiting your webblog. She came to understand too many issues, most notably what it’s like to have an awesome giving mindset to make the rest very easily know various specialized things. You really exceeded people’s expectations. I appreciate you for churning out the good, dependable, informative as well as fun tips on your topic to Sandra.

     
    Reply
  16. kawhi leonard shoes

    I wish to voice my gratitude for your kindness supporting all those that actually need assistance with in this theme. Your very own commitment to getting the message throughout had been exceptionally helpful and has truly helped guys and women like me to achieve their aims. Your own helpful suggestions signifies so much to me and extremely more to my office workers. Regards; from everyone of us.

     
    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *