Latest news with #home ownership
Daily Telegraph
11-08-2025
- Business
- Daily Telegraph
Housing crisis: Aussies fear they'll never own a home
A growing number of Australians believe they'll never own their own home, prompting calls for drastic government action to boost housing affordability. A Finder RBA cash rate survey of 34 experts and economists revealed a grim outlook, with more than one in three (35 per cent) Aussies convinced home ownership is out of reach. High prices, rising borrowing costs, and the struggle to save a deposit are to blame, according to Finder's head of consumer research, Graham Cooke. 'Record prices, steep borrowing costs, and saving for a deposit are locking people out,' Cooke said. 'In many suburbs, even a six-figure salary won't comfortably cover a mortgage.' Experts surveyed were asked what the most effective government action would be to make housing more affordable. The overwhelming consensus? Increase housing supply. 'Build, baby, build,' declared Kyle Rodda from Echoing this sentiment, Stephen Miller from GSFM simply stated, 'Supply! Supply! Supply! Through easing restrictions on building.' MORE NEWS Aus' shocking list of untouchable suburbs How my dogs helped me build wealth 'Put it down': Aussie expert's grim home warning Mala Raghavan from the University of Tasmania emphasised the need for government to 'play an enabling role' by streamlining planning and zoning regulations, investing in infrastructure, and offering incentives for affordable housing projects. While some experts suggested limiting immigration to reduce demand, the primary focus remained on addressing the chronic undersupply of housing. Noel Whittaker from QUT acknowledged the difficulty, noting the 'huge bottleneck' and bureaucratic hurdles hindering development. The survey also highlighted concerns about job security, with 12 per cent of Aussie workers feeling insecure in their current roles. Almost half (49 per cent) of Australians are living paycheque to paycheque. A majority of experts (80 per cent) expect unemployment to rise in the next 12 months. Stella Huangfu from the University of Sydney anticipates a gradual rise in unemployment, potentially reaching the mid-4 per cent range. Stephen Miller from GSFM suggested that the private sector is not strong enough to compensate for fading non-market sector employment. Despite these concerns, Noel Whittaker from QUT believes the unemployment rate will stabilise, citing a 'massive demand for labour' and numerous planned projects.
The Independent
06-08-2025
- Business
- The Independent
Renters growing less confident about ever buying a home
The number of renters actively saving for a house deposit plummeted to 17 per cent in July, a significant drop from 31 per cent at the start of the year, according to Barclays Property Insights. This decline is largely attributed to escalating rental costs, with nearly two-thirds (62 per cent) of renters reporting or anticipating a rent increase this year. The financial strain is also dampening home ownership aspirations, as only 12 per cent believe they can buy a home within the next year, and 37 per cent cannot afford one in their current or desired locations. Around a quarter (26 per cent) of renters are struggling to afford their monthly payments, with nearly half (45 per cent) to adjust their spending habits to cover housing costs. Despite the challenges, common strategies for saving include reducing discretionary spending, cutting back on holidays, or generating additional income through side hustles.
The Independent
05-08-2025
- Business
- The Independent
Renters ‘finding it even harder' to save for house deposit
The number of renters actively saving for a house deposit has plummeted significantly this year, a new survey reveals, as soaring rental costs squeeze household budgets. Just 17 per cent of renters surveyed in July are currently building a deposit, a sharp decline from 31 per cent recorded at the start of the year, according to research from Barclays Property Insights. The primary driver behind this struggle is escalating rent, with nearly two-thirds (62 per cent) of those surveyed reporting they have either experienced or anticipate a rent increase this year, directly impacting their ability to save. This financial pressure is also dampening aspirations for home ownership. Only 12 per cent believe they can achieve it within the next year, rising marginally to 16 per cent over a five-year horizon. Furthermore, more than a third (37 per cent) find themselves unable to afford a home in their current rental area or desired future location. Despite these challenges, common strategies for accumulating savings include reducing discretionary spending, cutting back on holidays, or generating additional income through a side hustle, the survey noted. Around a quarter (26 per cent) of renters said they are struggling to afford their monthly payments, compared with around one in seven (15 per cent) home owners who feel the same way about their mortgage. Nearly half (45per cent) of renters said they are adjusting their spending habits to ensure they can continue to afford their housing costs. Many mortgage lenders have recently announced changes to their lending criteria, potentially enabling some people to take out bigger loans. Jatin Patel, head of mortgages, savings and insurance at Barclays, said: 'Many people dream to one day own a home, but our latest findings highlight how renters are finding it even harder to save for a deposit while keeping up with rising costs. 'More positively though, we're still seeing savers create strong habits, and consider carefully the balance between getting into the market quickly with a lower deposit or trying to minimise monthly repayments in the longer term.' Barclays commissioned Opinium Research to carry out a survey of 2,000 people across the UK in July.
The Sun
23-07-2025
- Business
- The Sun
16 ways to boost your credit score before you apply for a mortgage including BNPL mistake and how to add rent history
THE key to buying your first home is a healthy credit score, so giving yours an MOT is the first step towards home ownership. We spoke to Experian's expert John Webb about the 16 steps YOU can take to boost your credit history. 1 If your credit score is poor, you might not be able to borrow enough to get the home you want - or you could be landed with higher monthly mortgage payments. There are three main credit reference agencies in the UK which collect information about you from public records, lenders and other service providers. When you apply for credit - such as taking out a mortgage or a credit card - lenders will want to check your record to make sure you're reliable. A "good" score is generally considered to be anywhere between 881 and 960, while a "fair" or average score will be between 721 and 880. If your credit score isn't high enough, or you just want to bump it up a little to get better rates, it is possible to build it up over time. Here are John's tips on boosting your score - including the Buy Now, Pay Later mistake you might be making and how to add your renting history. Martin Lewis explains why credit score 'isn't real' and shares 'the holy trinity' of measures lenders use to assess you Take your time It takes time to build up your credit score, so you need to start planning in advance. John recommends giving yourself just over a year to boost your score. This will allow time for any new accounts you open to mature and to start positively impacting your score. Check all three scores You'll have different scores from each of the three major credit reference agencies. These are Experian, Equifax and TransUnion. To get the best idea of where your score is at, you should check all three - it's free to do. There is a service called CheckMyFile that allows you to check them all in one place. You can sign up for a free 30-day trial. Remember to cancel or you will be charged £14.99 a month. Easy bank account mistakes to avoid You may not realise it but opening new bank or credit accounts can lower your credit score temporarily. That's because you will go through a credit check whenever you apply for a new account - and this impacts your score for a short while. Each new account application and opening can lower your score for up to 12 months. After about six months, the new account will start to have less of an impact on your credit score - as long as you're regularly making payments on time. Once the account is about a year old, it will start to have a positive impact on your credit score. So it's not necessarily a bad thing to open a new account - but you should try to avoid it in the year before taking out a mortgage. For the same reason, you shouldn't open too many bank or credit accounts around the same time. This is because although it's only a temporary dip, opening lots of accounts at once won't give your score time to recover. Being a loyal banker can pay If you've had at least one or two of your bank accounts open for a long time, that will look good to lenders. That's because it shows a consistent payment history over many years. Credit score companies calculate the average age of your bank accounts, and the older that is the better. Ideally you should aim for an average account age of five years or more. Why Buy Now, Pay Later purchases could set you back Buy Now, Pay Later schemes don't yet factor into credit scores. But John says you should try to avoid using them if possible - especially close to your mortgage application. That's because every time you do a new BNPL transaction it shows up on your credit report as a new account. And as we mentioned, you want to limit opening too many new accounts. John says: "If it's entirely affordable to use Buy Now, Pay Later and you don't have any issues making the repayments and so on then that's all right. "But I would tend to be a little bit more cautious, so probably the three months-plus before you apply for a mortgage you should probably avoid it if you can because you don't want those new accounts jumping onto your credit report." Log your council tax and Netflix bills You can add extra information about payments you make regularly through Experian's Boost feature. These can include council tax payments, savings accounts and subscriptions like Netflix and Spotify. You can boost your score by a huge 101 points if you do this. Be aware though that not all lenders will factor this in. Get a credit card - and keep using it Having a credit card and paying it off regularly and on time can help to boost your score. However you should make sure you keep using it. Not using it for a long time could mean it gets marked as "dormant" or the account is closed. "Good practice is to keep it active with very small essential spending, something you would have spent on anyway, and paying off in full every month just so you keep the card active," John says. Of course, if you miss a credit card payment that will have a negative impact on your score so you should only borrow what you can afford. Have a high credit limit... When you take out a credit card, you'll have a limit on how much you can borrow. The higher your limit is, the better it is for your credit score. John says that having a limit of £3,500 or above is good for your score. However this may vary across credit reference agencies. ...but keep your credit card balance low You might want to have a high credit limit - but you shouldn't be maxing it out. John says you can get a "significant" score boost if you have a high limit but you keep your credit card balance below 25% of that threshold. If you're using Experian, doing this could add a huge 90 points to your score. Plus, if your balance is £50 or less you can get another 30 points. Think about timing It's worth noting that credit reports aren't updated in real-time - so it can take a while for things to show up. If you're planning to apply for a mortgage, you might want to make sure any debts or balances you've paid off are showing up on your credit file. For example, you don't want it to say you owe £900 at the point that you apply for a mortgage. Ideally you want to pay off the balance before your credit statement is produced. Add your renting history Not everyone is aware that you can add your renting history to your credit report voluntarily. If you're a private tenant and pay your rent on time, this can help improve your score. You can add the information to your credit report using services like Credit Ladder or Canopy. Reduce your debt If possible, prioritise paying off any debt you have. This can dramatically improve your credit score and potentially mean you get better interest rates on your mortgage. You might also be able to borrow more. The EASIEST way to boost your score This is perhaps the simplest one to do and will give your score a decent boost. Just make sure you're registered on the electoral roll at your current address. Lenders like this because when you register to vote, your electoral details are recorded on your report and this helps them confirm your name and address. Plus, this can save you time on your credit applications because if lenders can't confirm your details through the electoral roll they may ask for other forms of identity and proof of address. Use eligibility checkers Before you go ahead with applying for a mortgage or other credit, you can use eligibility checkers offered by lenders. These can give you an idea of how likely it is you'll be accepted and the terms you might receive. But, crucially, they're "soft searches" so that means they won't affect your credit score. Meanwhile if you apply for a mortgage and get rejected then it will show up on your credit report. Don't let a mistake scupper your chances It's worth going through your credit report carefully to make sure everything is correct. You might spot an inaccuracy - for example, a missed payment that shouldn't be there. If that's the case, you should contact the credit reference agency to dispute it. The agency can then query it with the lender on your behalf. Add notes to your credit score to give you power If there's a negative mark on your credit report, you can explain what happened if it's for a genuine reason. Credit reference agencies will let you add a "notice of correction" of up to 200 words on each mark. You can do this if you missed a payment for reasons like redundancy, illness, bereavement, mental health issues or a gambling addiction. Having a notice of correction means a human will review your application, rather than you getting an automated refusal. However lenders can still refuse you in this case and it can delay the application process.
