There has been some alarming news from the property sector recently, as it appears that the average cost of privately renting a home across England and Wales has reached a record high of £757 a month. LSL Property Services has reported and average rent rise of 2.1 percent in September 2013 when compared with September 2012. Indeed, it appears that the property market is properly up and running again as mortgage lenders are also reporting that September was a strong months for them. The demand for homes is high, which means that landlords can afford to raise their rent prices.
“Higher rents in almost every region show that, despite government schemes, buying a first home is still a difficult aspiration,” said David Newnes, director of LSL, which owns estate agents Reeds Rains and Your Move. “This is not only down to low salary growth, but also a general shortage of supply – which is the underlying reason why homes are getting more expensive. The long-term trend to renting therefore looks unlikely to change significantly in the near future.”
One of the most exciting things about moving into a new home is the fact that people have the opportunity to furnish a house to meet their own personal tastes. Even simple things such as bath towels can make a huge difference to the feel of a home. Luxury towels are so much nicer than dirty and tired old ones, and they make a much better impression on potential guests. As the property market revives the future is looking much brighter for home furnishings.
However, which CML chief economist Bob Pannell says that “indicators suggest we are witnessing the strongest house purchase performance in five years,” it also appears that some tenants’ finances are being stretched to the limit. Some 8.5% of all rent across England and Wales was late in September, up from 7.8% in August.
It just goes to show the importance of choosing a home that your salary can afford, as nobody wants to worry about making the rent every month. Whether you need to buy bathroom towels or a new living couch, there are plenty of other extra costs associated with moving home. Anyone thinking of entering the property market should make a clear budget of their finances so that they have enough money to purchase everything that they need.
A strong property market can only mean good things for the country’s economy in general. After going through the recession and living through the biggest financial crisis for almost a century, it is nice to start hearing positive news for once. Life’s little luxuries can make all the difference during good times and bad, so it don’t be afraid to splash out on high quality items which will make you feel good and stand the test of time. It often makes more financial sense to buy high quality items as they will last a lot longer than cheaper equivalents which makes them much better value for money.
About the Author – Mauneel Desai contributes regularly to a range of consumer blogs. He has cross-industry experience in Technology, Investment Management, Financial Services, Higher Education, Academic Research & Healthcare.
