UK First-time buyers’ chances evaporate

Only 11.5% can afford a property in their own area without relying on their family, research shows, and stamp duty change will make it harder

Barely one in ten potential first-time buyers could afford to get on the property ladder without relying on their family for financial help. Only 11.5 per cent of all those trying to buy their first home can do so in their local area under their own means, according to Skipton Group, the owner of Connells Group, the estate agency.

Having analysed an area’s average incomes and house prices, it found that Ceredigion in west Wales was the least affordable part of the UK for locals to buy their first home.

Fewer than 3 per cent of local people wanting to stay in Ceredigion could afford to buy a typical first home in the county, Skipton calculated. The four least affordable places for first-time buyers were all in Wales, a reflection more of “very low” average incomes than house prices.

In the City of London, 3.2 per cent of first-time buyers could afford to buy without tapping the Bank of Mum and Dad, with much higher house prices somewhat offset by higher incomes. All but one of the most affordable areas were in Scotland. In Aberdeen, close to 33 per cent of locals could buy a home independently.

In Manchester, the only place in England in the top ten, the proportion was about 23 per cent. With house prices having risen much faster than wages over the past decade, younger people trying to buy their first home increasingly rely on help from their families.

Legal & General estimates parents gave £9.2 billion last year to help their children get on the ladder. Stuart Haire, chief executive of Skipton Group, owner of Skipton Building Society, said the “chronic lack of affordability is about to get even worse”, in reference to looming changes to stamp duty.

From April the threshold at which first-time buyers pay stamp duty will drop from £425,000 to the previous level of £300,000, adding up to £6,250 to the overall purchase cost.

The typical first-time buyer home will now be liable for stamp duty in 32 per cent of local authorities, up from 8 per cent at present, Skipton said.

“We know the public finances are tight, but we urge the government not to move the goalposts and exacerbate the pain already being felt by first-time buyers,” Haire said.

“We are calling on the government to maintain the nil rate stamp duty threshold of £425,000 for people buying their first home and to uprate this threshold in line with inflation each year.”

Source: The Times

Taiwanese youth questions the value of homeownership

Taiwanese Youth Question the Value of Homeownership

In Taiwan, homeownership has long been considered a hallmark of stability and success. Older generations worked diligently to purchase property, viewing it as both a personal milestone and a sound investment. However, a growing number of young Taiwanese are questioning whether owning a home is still a worthwhile goal. With soaring real estate prices, stagnant wages, and shifting lifestyle priorities, many are reconsidering the traditional notion that a house equals prosperity.

The Rising Cost of Homeownership

One of the primary deterrents to homeownership among Taiwanese youth is the staggering increase in housing prices. In cities like Taipei, where job opportunities are concentrated, real estate values have skyrocketed beyond the reach of most young professionals. According to the Ministry of the Interior, the price-to-income ratio in Taipei exceeds 15:1, meaning that it would take over 15 years of an average salary without spending on anything else just to afford a home. That is a higher ratio than New York (9.8), London (14), or Seoul (13). It is not much better outside the capital.

The United Nations considers a housing price-to-income ratio of three to be affordable. But Taiwan’s national average is 11. Even its cheapest city, Keelung, has a ratio of 6.5. The average Taiwanese household spent nearly half of their disposable income on mortgage payments in the second quarter of 2024.

For many young people, this financial burden makes homeownership an unrealistic dream. High down payments and lengthy mortgage commitments deter them from even considering a purchase. Instead, they opt to rent, live with family, or explore alternative housing solutions.

Stagnant Wages and Economic Pressures

While housing prices have surged, wages have remained relatively stagnant. Many young professionals struggle with limited income growth, making it difficult to save for a down payment or qualify for a mortgage. Additionally, the rising cost of living, student loan debts, and job market instability contribute to financial insecurity.

They are reluctant to become a wu nu, or “housing slave”, that is slang for young homebuyers who feel trapped by their expensive mortgages.

Rather than tying themselves to a long-term mortgage, many prefer the flexibility that renting provides. Renting allows them to relocate for job opportunities, travel, and invest in other aspects of life, such as education and experiences.

Changing Attitudes Toward Success and Happiness

Unlike previous generations, young Taiwanese are redefining success beyond material assets. For many, homeownership is no longer seen as the ultimate achievement.

Instead, they prioritize work-life balance, mental well-being, and financial independence.

The rise of remote work and digital nomad lifestyles has further influenced this shift. Many young professionals prefer to invest in experiences, personal growth, and travel rather than tying themselves to a mortgage in an increasingly expensive housing market. Some even choose to move abroad, seeking better opportunities and a lower cost of living.

Government Measures and Housing Policies

In response to affordability concerns, the Taiwanese government has introduced measures such as social housing projects, rental subsidies, and tax policies aimed at curbing speculative real estate investments. However, these efforts have yet to make a significant impact on making homeownership accessible for younger generations.

Some experts argue that more drastic reforms are needed to regulate the housing market and address income disparities. Without meaningful intervention, the trend of declining homeownership rates among young people may continue.

Taiwanese youth are challenging the traditional belief that owning a home is an essential part of adulthood. With economic constraints, evolving priorities, and a desire for flexibility, many are choosing alternatives to homeownership. As societal attitudes shift, it remains to be seen whether the government and real estate market will adapt to accommodate the changing needs of the younger generation.

Source: Ziggurat Real Estate

The singular rise of solo living in UK

More than one in eight of us now live alone, and it is changing the kind of houses developers are building.

More than one in eight of us now live alone, with the surge in solitary homeowners and renters outstripping the general rise in the UK population. There are 8.4 million people living alone, that is 13 per cent of all households.

This has gone up by 620,000 in ten years, an increase of about 8 per cent. The population of the UK has gone up by 6 per cent in that time, according to the Office for National Statistics. It is forecast that by 2039 there will be 10.7 million people living alone in the UK.

But it’s not affluent young professionals leading this demographic charge — it’s older people. Those aged 65 and over account for 93 per cent of the growth in single-person households in the past decade. And more than twice as many men — an increase of 415,000 compared with 204,000 women — went solo between 2013 and 2023.

The number of people aged between 25 and 44 living alone fell from 18.8 per cent in 2013 to 17.5 per cent in 2023. Several affluent London postcodes are singleton territory, with more than half the occupants of the City (51 per cent) going it alone, followed by Kensington and Chelsea (43.7 per cent) and Westminster (42.7 per cent).

The national average is 30 per cent. But there are interesting outliers, according to the property consultancy JLL. These include Norwich, where 38.9 per cent of households are single, and the Lancashire seaside resort of Blackpool (38 per cent).

In a report last year, local services in Blackpool identified “an oversupply of poor-quality one-person accommodation and limited choice of family housing”. In Norwich, where a high proportion (15 per cent) of over-65s live alone, many students from the city’s two universities stay on after graduating, according to Mason Burrell from the local estate agency Brown & Co. “Norwich is well suited [to single living] in that it has a large number of terraced houses, starter homes and one-bedroom apartments.”

The estate agency Hamptons analyzed claims for the single person council tax discount, which entitles occupiers to 25 per cent off their bill, and found that Blackpool and South Tyneside, where 42 per cent claim, followed by Norwich and the Kent coastal town of Hastings, with 40 per cent, were at the forefront.

“Areas where people are most likely to live alone tend to have more elderly populations,” says Aneisha Beveridge from Hamptons. “Whereas areas with fewer single occupants are some of the most unaffordable parts of the country and/or suburban hotspots, which tend to be dominated by families.”

10.7 Million: Projected number of single UK households by 2039

People living alone are less likely to own their home. This is largely down to affordability. In 2024 the average income for a mortgaged household was 66 per cent higher than that of a single person, down from 75 per cent in 2022 and from the 20-year high of 90 per cent in 2015, according to the estate agency Savills. A single person in full-time employment would need to borrow seven times their annual earnings to purchase the average property in the UK. This rises to more than nine times their salary in London and the southeast. “There is a clear, marked disparity in earnings, and hence borrowing power, between a mortgaged household and that of the average single person,” says Nick Maud, the director of research at Savills. “Our data presents a stark illustration of the significant challenges faced by single people in accessing debt and therefore the housing market, compared with households that include two or more working people. “Those priced out of the owner occupier market, either through circumstance or lifestyle choice, turn to the rental market, which places further strain on a sector which is already experiencing a constriction in supply.” Requirements for renting differ by age. “We find singles under 30 are generally more open to living in a flatshare and often team up with a friend to find a suitable property,” says Adam Jennings, the head of lettings at the estate agency Chestertons. “Singles aged 30 and over tend to have a more established career path and larger budget. The majority of this age group favors living alone and are in a financial position to do so. “Younger tenants don’t always plan to live in their flat long-term, while singles aged 30 and over want to create more of a home and are looking to sign long-term tenancy agreements of two years and more.” Not enough new homes are being built to meet the increase in single households. Apartments make up 40 to 45 per cent of all new homes, according to the Home Builders Federation, a trade body. “But significant constraints remain,” according to its chief executive, Neil Jefferson. “Planning policy changes are welcome, but a lack of affordable mortgage lending is suppressing demand.” Although touted as an affordable answer for single buyers, shared ownership homes, whereby people buy a portion of the property and pay rent on the rest, represented less than 1 per cent of households in the 2020 English Housing Survey. Build to rent (BTR), when properties are purpose-built for the rental market, is becoming a popular option, with more than 265,000 either finished, in the pipeline or planning. “According to our joint research with Savills, BTR is in the new-homes pipeline for 67 per cent of local authorities,” says Ian Fletcher, the director of policy at the British Property Federation, a trade organization. “These homes cater to people living solo, providing well-maintained properties and security of tenure. But they are primarily located in towns and commuter hubs, meaning there will be areas of the country where options for people to live alone will be constrained.” Fletcher highlights both BTR and co-living projects, such as the developments by the London firm Pocket Living, where 88 per cent of buyers are single and paying at least 20 per cent below market value — £232,000 to £300,000 for one-bedroom apartments — as important building blocks in addressing the needs of singletons. “Another consideration is the effect on mental health and loneliness,” Fletcher says. “We hear a lot that the communities in co-living and BTR are an important part of why people choose to live there. You get the best of both worlds, a place of your own and communal spaces.”