Monthly Archives: May 2012

First Time Buyers – How To Help

How to Help First Time Buyers.

Every parent or grandparent has the opportunity of helping future generations of first time buyers to get on the housing ladder – by making sure their wealth “cascades down the generations.”   Before you read the AA press release, you might want to check out how you could help future generations of first time buyers in your family.

Despite the housing slump of the last three years, the long term home-owning aspirations of first time buyers are higher than at any time since the 1970s.

New research carried out for the AA Home Emergency Response service reveals that of those who have bought their first home in the period since the 2008 housing peak, 37% say they feel they can realistically aspire to owning a detached home1.  The equivalent figure for those buying in the 1970s is 39%, falling to 33% for first time buyers in the 80s, and 32% for those entering the housing market in the 1990s.

Aspirations for the size of home have increased – while the percentage expecting to progress to a detached home with two to three bedrooms fell slightly from 13% in the 1980s to 12% for those buying since 2008, the proportion of first time buyers with expectations of a four or five bedroom house have risen from 19% to 22% over the same period.

The political debate about mansion taxes has not dissuaded people from thinking ownership of a very large home will be feasible for them – 3% of those buying their first home since 2008 expect to eventually own a home with six or more bedrooms, three times the proportion of those getting their first mortgage in the 1980s.

Both men and women are equally bullish in their belief that a detached home will be within their reach, but it’s the younger generation who are most likely to feel this will be at the larger end of the market.  7% of 18-24 year olds believe they will end up owning a detached home with six or more bedrooms.

The 1980s is remembered as the decade in which Margaret Thatcher’s Government heavily promoted the benefits of home ownership.   However, for a quarter (24%) of those buying in that decade, a terraced home was the limit of their home owning ambitions.  Only 15% of those buying for the first time since 2008 believe their ultimate home will be a terraced one.

While people’s aspirations have stretched beyond the terraces, over the same period the expectations for apartment living have almost doubled.  In the 1980s 6% of first time buyers believed that a flat would be the pinnacle of their home ownership, a figure which has risen to 11% for those buying in the post 2008 housing market slump.

Although 37% of first time buyers may feel they will achieve ownership of a detached home, detached properties only make up 17% of the housing stock, as seen in the table below:

 

Percentage of first time buyers stating they could realistically aspire to own this type of property in their lifetime – by date of buying first property

Actual housing stock by property type2

Property type

Since 2008

1980s

1970s

(2010)

Detached

37%

33%

39%

17%

Semi

31%

23%

25%

26%

Terrace

15%

24%

13%

28%

Flat

11%

6%

3%

20%

Detached bungalow

4%

9%

14%

9%

Other / don’t know

3%

6%

7%

2 Figures for England only – bungalow category includes all bungalows

 

Tom Stringer, Head of AA Home Emergency Response, said: “On the motoring side we are aware that new drivers love their first car but often aspire to drive a bigger, better, more expensive model.

The same appears to be the case in the housing market.

“This research has revealed that the troubles in the housing market over the last three years have not dented the aspirations of recent first time buyers.  In fact, new entrants to the market are more positive about their long term prospects than those entering in the last thirty years – something which could bode well for recovery in the market. Just as car owners are likely to have breakdown cover for emergencies, we believe it is important for home owners to be adequately covered in the event of emergencies. ”

First time buyers how to help.

Elderly And Employed – The New Generation Of Over 65s Powering Britain

Elderly and employed…

Just the sort of folk who should be downloading our booklet

– Two in five of this year’s retirees want to stay in work.

– One in 10 entrepreneurial pensioners would like to start their own business or earn money from a hobby.

– Prudential’s Class of 2012 research shows that working part-time is the preferred option

Two in five (40 per cent) people planning to retire this year would be happy to work past 65 if they had the chance, according to new research from Prudential.

Prudential’s Class of 2012 study, which looks at the finances and expectations of those planning to retire this year, shows that 48 per cent of men and 32 per cent of women would be happy to continue working past the standard retirement age.

The main motivation for more than two thirds (68 per cent) of this year’s retirees who want to stay in the workforce past 65, is a desire to remain physically healthy and mentally active, while 39 per cent do not like the idea of retiring and just staying at home. More than half (54 per cent) claim that they enjoy working.

Gradual retirement

However, despite wanting to stay in work, only 13 per would choose to continue to work full-time with their current employer. Nearly half (49 per cent) of those retirees who want to work past 65 years old would prefer to work part-time, either with their current employer or in a new role, in order to strike a better work life balance.

More than one in 10 (11 per cent) of entrepreneurial retirees would consider starting their own business after the age of 65 or earn money from a hobby in order to keep working. Five per cent would work as charity volunteers.

Recent ONS figures show that average retirement ages are rising, with men now retiring at an average age of 64.6, compared with 63.8 in 2004, and women working until 62.3 years compared with 61.2 previously.

Vince Smith-Hughes, retirement expert at Prudential, said:  “There is a new retirement reality taking shape across the UK, with thousands of people actively choosing to work past the traditional retirement age.

“The fact  that so many of this year’s retirees would keep working on a part-time basis is a strong indication that, for many, working is as much about staying young at heart as it is about funding retirement.

“Gradual retirement is an increasing trend among pensioners, whether this means remaining in the same job on a flexible basis or even setting up their own business! Those retiring at 65 will face an average of nineteen years in retirement which makes the financial and social benefits of working for longer an even bigger draw for a new generation of industrious retirees.”

Around the country, those planning to retire this year from the East of England were the most keen to stay part of the workforce with 54 per cent saying that they would choose to work past 65 if they had the option. Half (49 per cent) of Londoners and 45 per cent of people in the South East would also like to continue to work.

However, just 29 per cent of Scots planning on retiring this year would be happy to work past 65 if given the choice, along with 30 per cent of retirees in Wales and in Yorkshire and Humberside, and only 21 per cent of those in the North East.