2016 – The year of the home owner?

2016 – The year of the home owner?

As we all know, now is a time when many people struggle to get a foot on the property ladder – but could 2016 be the year that finally sees ownership back on the climb? Home ownership has fallen from a peak of 71% of households in 2003 to below 63% today. This may be set to change, but methods of ownership will have to be more diverse than many of us are used to. The solution? Making property easier to access.

Old powers diminish – the decline of traditional landlords

Picture yourself in the outskirts of London. You’re buying your first home as a joint venture with a friend, partner or sibling – perhaps with a little help from your parents. At the moment, you’ll find yourself up against a couple of dozen other potential buyers, most of whom are likely to be buy-to-let landlords. They’ll be ready to do the deal quickly, and can often pay in cash – luxuries you probably don’t have. You’re bringing a knife to a gunfight.

This dynamic is set to change significantly from April 2016. As our Director of Property describes it: that’s when the taps on the ‘buy-to-let bath’ get turned off. George Osborne has ‘turned off the taps and then pulled out the plug’ on landlords through the combination of his Autumn and Summer Statements. He cut tax relief for mortgage interest, and pasted three per cent onto stamp duty for buy-to-lets and second homes – but excluded large-scale professional investors because of their role in ‘supporting the government’s housing agenda.’

The government clearly hopes that decreased competition from landlords will see a rise in homeownership, and a move towards a more professionalised rental sector.

New powers to own – claiming your share

A whole host of solutions have been found to help promote home ownership, and not all of them are government-led. One thing is sure: the whole concept of what it means to ‘own’ property is changing.

At Property Partner, we’ve opened up the world of the institutional property investor to everyone. Investments start from as little as £50, with some putting £50,000 or more into individual properties. If you’re looking to track the housing market and build up a deposit for your own home – or investing for other reasons – it’s an excellent way to gain exposure to the UK’s residential hotspots without the hassle and expense of outright property ownership.

If you’re looking for a leg-up onto the ladder, this isn’t the only method. You can also take advantage of the government’s shared ownership – and the rules are being relaxed around this so that more people will be eligible. At Property Partner, we also plan to introduce our own ‘shared ownership’ scheme to help more people onto the ladder, while offering the rest of the property up to crowd investment. We’re working hard to introduce this as soon as we can.

Home ownership is also being boosted by a raft of other government initiatives including the new Help to Buy ISA, London Help to Buy loan, Right to Buy for Housing Association tenants, new affordable homes, and new starter homes. The list is extensive – and hopefully – the future looks brighter for homeowners.

Want to increase your share of ownership in the UK property market? Take a look at the properties currently available on our marketplace, and start building on your own portfolio: