The UK could be seeing a reverse in a trend that has being growing since the Second World War. It's one of the things that is quintessentially British. So what is?
Home ownership! Since the 1940's more and more of the UK's population has been able to buy themselves a house. This cumulated in the 1980's when Margaret Thatcher introduced a policy of social responsibility where owning a house was a key pillar to retaining the values of our country. To help this she introduced the right to buy scheme where local authority tenants were able to purchase their council house.
Most people who have bought a house over five years ago will probably admit it has been there best ever investment. House price have trebled over the last 10 years as we have had historically low interest rates. However interest rates are on the climb and many people can no longer buy a house due to house prices being about seven times the average salary.
As a result many believe the steam has run out of the property market and wish to access the profits they have made by being home owners. Many are deciding to sell their houses and rent. They believe that there is no longer any advantage of owning a house if property prices are no longer going to go up. They may as well rent as they then don't have to worry about maintenance, interest rates or worrying about the property market. Many also expect a crash and intend to buy back into the market when prices are more reasonable. Let's see what happens?
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