3. A changing housing landscape
Government policy focussed on home
ownership
House prices up 9.5% year on year
Housing transactions up 31% year on
year
Mortgage completions up 29% year on
year
Mortgaged first time buyers up 49% over
2 years
Where does that leave renting?
4. Understanding the shape of the market
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
FTB Mortgages Home Mover Mortgages BTL Mortgages Cash Transactions
Average 1993 - 2002 Average 2003 - 2007 2012 2013
Source: HMRC, CML, Savills
5. Help to Buy 1: Equity Loan
0%
5%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
2,500
3,000
West
Midlands
Yorkshire
and The
Humber
North
East
North
West
East
Midlands
South
West
East of
England
South
East
London
Total HTB 1 Equity Loans As % of new build sales
Source: DCLG, Land Registry. For completions up to 28th Feb 2014
6. An injection of reality
Reality MMR
Mortgage Lending
up to 75% LTV
Q3 07 £49,605m
Q4 12 £26,105m
Q4 13 £33,251m
High Loan to
Income Mortgage
Lending
Q3 07 £31,776m
Q4 12 £13,551m
Q4 13 £19,855m
Income certified
Q3 07 54%
Q4 12 88%
Q4 13 90%
Mortgage Lending
> 90% LTV
Q3 07 £14,209m
Q4 12 £821m
Q4 13 £1,106m
7. Reasons for renting
0%
10%
20%
30%
40%
50%
60%
70%
80%
18 to 24 25 to 34 35 to 44 45+
Can’t afford the deposit to buy a property
Can’t afford the monthly payments of a mortgage
Don’t meet the lending criteria for a mortgage
Flexibility
Source: Savills / YouGov
8. Pressure from both ends
-41%
-17%
3%
13%
27%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Under35
35-44
45-54
55-64
65orover
Change in Levels of Owner
Occupation since 2001
Source: English Housing Survey
-24%
-9%
32%
26%
-23%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Under35
35-44
45-54
55-64
65orover
Change in Levels of Social
Renting since 2001
10. Transactions and levels of private renting
1.08m
Current
1.30m
2018
4.80m
Current
5.83m
2018
Transactions
17.74m
Current
17.40m
2018
Home Owners
Households
Private Renter
Households
19. The under 35s (2011 v 2001)
-38% -38% -34% -38%
-33% -31%
-38%
-33%
-38%
-28%
52% 56% 59% 62%
75% 75%
82% 85% 85%
101%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
SOUTH
EAST
SOUTH
WEST
LONDON EAST WALES Y & H EAST
MIDS
NORTH
WEST
WEST
MIDS
NORTH
EAST
Change in Home Ownership Change in Private Renting
Source: Savills; 2001 & 2011 Census 19
24. Tenancy length less important for younger households
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18 to 24 25 to 34 35 to 44 45+
Age of Respondent
Would you like a longer tenancy agreement?
Agree Ambivalent Disagree
Source: Savills / YouGov
28. An increasingly diverse tenant profile
0%
5%
10%
15%
20%
25%
30%
35%
Higher managerial, administrative and professional occupations2. Lower managerial, administrative and professional occupations3. Intermediate occupations4. Small employers and own account workers5. Lower supervisory and technical occupations6. Semi-routine occupations7. Routine occupations8. Never worked and long-term unemployed
Rest London
Source: 2011 Census
29. The important property features
0%
10%
20%
30%
40%
50%
60%
0%
10%
20%
30%
40%
50%
60%
Important When Searching Pay Higher Rent
Source: Savills / YouGov
30. The important property features
0%
10%
20%
30%
40%
50%
60%
0%
10%
20%
30%
40%
50%
60%
Important When Searching Pay Higher Rent
Source: Savills / YouGov
31. The potential value drivers
0%
5%
10%
15%
20%
25%
30%
35%
40%
%wouldpaymore
Low income (under £40k) Mid income (£40k - £80k) High income (over £80k)
Source: Savills / YouGov
Deposit constraints is still the biggest reason people rent. But among older renters failing to meet lenders criteria becomes a problem – these groups are more likely to have other financial commitmentsThe really interesting thing are these grey bars. Flexibility is a factor (18-24 contain students) Across the boards – 24% cited flexibility. And when we looked at more affluent households that figure rose to 30%.
32% over 30% outside of London36%over 30% in London
Search for quality – Better spec but also better managed.Comments: Damp, mould, bad quality fixtures and fittings, poor standard equipment
Search for quality – Better spec but also better managed.Comments: Damp, mould, bad quality fixtures and fittings, poor standard equipment
Search for quality – Better spec but also better managed.Comments: Damp, mould, bad quality fixtures and fittings, poor standard equipment
Now here’s a key finding. Not all tenants want longer tenancies. Younger respondents value flexibility. However, longer tenancies grows in favour among the over 35s – this is the demographic more likely to have a family and want the stability of knowing they can stay put.
Search for quality – Better spec but also better managed.Comments: Damp, mould, bad quality fixtures and fittings, poor standard equipment
