Rising property prices pushing ownership out of reach for many

IF there are two sides to every story, then the subject of property, which has commanded plenty of column inches in the Western Morning News over recent months, certainly spits down the middle.

On the one hand there is a housing crisis across the region as firsttime buyers struggle to get a foot on the ladder, while councils face a growing problem trying to put a suitable roof over the heads of those languishing on waiting lists.

On the other, there are those who own their own home, or two, and are enjoying the fact that their investment is steadily increasing in value, with demand for property in many areas pushing up prices.

For the haves and the have-nots, stories about changing property and rental values are either good news, or bad, depending on your position in life or point of view.

And with the provision of new homes failing to keep pace with demand, it seems that the gulf between home ownership and affordability for those seeking a place to call home is likely to widen as prices continue to ratchet upwards.

In today’s WMN we report on the fact that the ‘gold rush’ in terms of Westcountry property sales shows little sign of abating anytime soon, according to estate agents.

A number of factors have had an influence since the pandemic struck last March.

An extended stamp duty holiday helped keep markets moving at a time when lockdowns threatened to bring the sector to a grinding halt, and a rush to complete purchases before the duty holiday ended caused house prices to rise to a record high in June, according to the Office for National Statistics.

Low interest rates have also helped make borrowing more attractive, while a transformation in working practices, which has seen significant numbers of people working from home, has enabled people to consider moving out of conurbations to enjoy a better quality of life, ditching commuting in favour of online meetings.

Another factor of particular interest in the South West has been two summers of staycations as overseas travel was restricted. The influx of visitors to Cornwall and Devon has pushed up demand for holiday lets and AirBnB accommodation – which in turn has tempted some property owners to favour lucrative holiday stays in place of standard rentals, thereby reducing lettings stock.

And all those holidaymakers falling in love with our beautiful beaches, quaint harbours and villages, upland scenery and rural locations, will doubtless have cast an eye over displays in estate agents’ windows and considered a permanent move.

There will be property owners who cash in on rising prices or reap the rewards of soaring demand for holiday accommodation, and others who stay put safe in the knowledge that their home is worth more than it was a month ago.

And there will be first-time buyers left feeling desperate as the juggernaut of property prices keeps ploughing onwards and upwards, leaving them behind.

An Englishman’s home may be his castle, but for many it remains an unbreachable fortress. And for the sake of the next generation answers are desperately needed.