Easy Steps to Decluttering Your Home, House Prices to Rise by 56% Over the Next Decade, Plus More 

Welcome to David Doyle's October newsletter

In this edition, we reveal why experts are predicting a 56% rise in house prices over the next decade, rising house prices have turned homeowners into millionaires and four million homeowners over the age of 55 have announced their intention to downsize.

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UK Property Prices to Rise by 56% Over the Next Decade

 

 

The latest figures from the property market are indicating that property prices will continue to surge ahead over the next decade.

Amidst a great deal of concern regarding house prices and Brexit, the news that house prices will continue to grow at a steady rate is sure to be well-received by homeowners.

The statistics suggests that the value of UK property will continue to climb at a rate of 0.37% a month, which will mean by 2027 the average UK house, will be worth &347,757 – an increase of 56% over the next decade.

Surprisingly, Nottingham has come out on top as the city that is expected to see the most growth, with the average property price expected to have risen by 160% over the next decade. Glasgow and Oxford came second and third with predictions showing that the average property value will go up by 131% and 115%.

Cardiff and Edinburgh are also expected to be swept up in the post-Brexit boom whilst areas that have enjoyed constant growth over the last few years like London and Southampton don’t even make the list.

Bristol, Leeds and Swansea are predicted to see the smallest amount of growth, although they will still see a considerable 58%, 67% and 80% rise in value over the next decade.

 

Homeowners are Becoming Millionaires Thanks to Rising House Prices

 

 

Barclays Wealth’s recently published a prosperity map that sheds light on the rising number of millionaires in the UK.

They found that as a result of rising prosperity and property prices, one in 79 Brits over the age of 21 are considered millionaires.

This figure has risen considerably since 2016 where the statistic was one in 84 Brits. In fact, according to Barclays Wealth, the UK’s millionaire population is growing each year by approx. 7.6%.

Whilst this group of wealthy individuals is still significantly smaller than the size of the wider UK population, at a number of 625,000 and rising, we have reached our highest number of millionaires on record.

When this prosperity is analysed region-to-region (see below table), there are some very clear and obvious findings.

 

Most notably, that our millionaire population is highest at the heart of the UK. In our capital, a staggering 165,000 people fall within this millionaire-bracket. And with an average house price of &502,787, are we really that surprised?

After all, there appears to be an undeniable correlation between highest property prices and highest levels of prosperity.

In the northeast of England, where the average house price is &118,971, there are only 12,000 millionaires. That is just 7% of the number of wealthy Brits found in London, and a difference of over &380,000 in terms of the average house price.

When it comes to highest growth, the East Midlands and South West experienced the greatest surge in wealthy individuals, up 11.1% and 10.5%, respectively.

From Barclays Wealth’s prosperity map, it is clear that property is a great investment, and has sparked growth in many UK cities.

Homeowners Over the Age of 55 are Planning on Downsizing

 

 

New research from life insurance company, Prudential, indicates that almost half (47%) of UK homeowners aged 55 and higher are planning to downsize.

In total, more than 3.9 million Brits will be on the move during their later years, and on average, will be walking away with around &112,000 in equity.

One in ten (11%) expect to make more than &200,000, and a staggeringly high one in seven (13%) state that without downsizing, they could not afford to retire.

When asked what they planned to do with the equity raised from downsizing, 60% of respondents answered that they would use it to increase their retirement funds, 47% were planning to use the cash for travelling, whilst 13% wanted to help their children by a house.

For the majority of respondents, however, the main driving force for this lifestyle change is not for financial purposes.

From Prudential’s study, it seems that only 28% of downsizers are moving to secure more money for their retirement. Whilst nearly three-quarters (74%) answered that convenience was more important to them, with one in three (34%) stating that having a smaller, more manageable garden was a major motivation.

Across the UK, Northern Ireland appears to be the region with the highest number of over-55s who are looking to downsize (63%), closely followed by the East of England (60%).

Whilst Prudential found that those least likely to downsize live in London (41%), Scotland (45%), and the West Midlands (45%).

In response to the unexpected preference for convenience over profit, Prudential retirement income specialist, Vince Smith-Hughes, had this to say, “it’s interesting to see that these figures challenge the common theory that ‘my house is my pension’.”

According to Vince, selling your property to free up cash may be appropriate in some cases, but it should never be seen as a substitute for saving for retirement.

If you would like any advice regarding your downsizing options, please don’t hesitate to get in touch.

Easy Steps to Decluttering Your Home

 

Do you sometimes feel as though you’re drowning in a sea of clutter? Or that your house has become more and more disorganised? It’s time to hit those common, messy areas.

Start by sorting through everything you own.
Getting started is always the hardest part. Performing an audit of everything you own is a great first step. Gather common build up items like books, items of food, jewellery, paperwork, loose batteries or anything you’re saving “just in case”. Find out how many duplicates or useless items you have, throw them away. Whatever there is leftover, sort and store them properly.

Next… tackle the wardrobe
Let’s face it, a wardrobe is a totally different beast to the random things you tend to collect.

A good system to operate in the future is a one in one out system. Every time you buy a new item of clothing, throw away an old item.

Whilst you’re at it, you should tackle your sock drawers. Throw away any old and worn out items, and add an organiser to the draw to keep everything separate and neat.

Sort out your utensils drawer
You know you’ve collected too much cutlery when the draw starts to stick. Take everything out of the drawer and throw away those useless tools (like your melon baller or your citrus juicer) and add a divider to better divide your essential utensils.

Organise your garage, shed and/or loft space
Transparent boxes are your best friend when it comes to organising your storage spaces. You can stack them all on top of each other and you can see all the contents you’ve stored inside them, meaning you don’t need to go through a hundred boxes to find something.

Get the kids involved
Encouraging your kids to keep their bedrooms neat and organised is a brilliant way to keep one of the messiest areas of your house neat and tidy.

Introduce them to the idea of donating unwanted toys to charity shops and how doing so can have a positive impact on the lives of others. It’s also a vital life skill your children will need to learn.