How can first-time buyers climb onto the property ladder?
A report yesterday suggested that the UK is fast becoming a property rental economy rather than a property purchase economy, something which has been in place for many decades. There are now great concerns that first-time buyers are effectively being priced out that the UK property market due to an increase in property prices and a lack of liquidity in the mortgage market. So how can first-time buyers climb onto the property ladder?
There are many different options available for first-time buyers although unfortunately they either mean years of saving or some form of shared equity with a housing association or other third party. At this point in time even the average UK house price is well beyond the means of many first-time buyers and even if property prices come down, there may be a reduction in liquidity in the mortgage market which will again block their route to entry.
It is ironic that the UK situation has now turned full circle in direct contrast to the US situation where many people had preferred to rent rather than buy. There is very little assistance that the UK government can offer in the short to medium term and ultimately first-time buyers are now at the beck and call of market forces.
Nationwide home survey shows first rise in over 12 months
The Nationwide housing survey has confirmed the first annual rise in UK home prices for 19 months. In the 12 months to October 2009 the price of the average home in the UK increased by 2% although the rate of increase has slowed from 1.4% in August and 0.9% in September to just 0.4% in October. While there may be a number of factors to explain the reduction in the rate of increase, the very fact t...Read More
Sub-prime mortgages withdrawn in credit crunch
Potential homebuyers are set to find it ever harder to enter the housing market as a result of providers withdrawing sub-prime products from their portfolios, it has been predicted. Research conducted by price comparison site Moneyfacts.co.uk has found that the number of lenders offering sub-prime products has dropped from 32 to 20 in the last 12 months. Meanwhile, the number of mortgages availabl...Read More
Land Securities signals upturn in UK commercial property market
Land Securities, one of the UK's leading commercial property companies, has today issued a very interesting and positive note on the state of the UK commercial property market. The company has bounced back from last year's troubles and significant property write-offs and today confirmed profits came in at just over £1 billion against a loss of £4.77 billion last year. The company has cited a...Read More
Nationwide confident on UK housing market
The Nationwide, the UK's largest building society and a major player in the property sector, has today issued a report suggesting that the UK property sector should remain fairly stable over the next 6 to 12 months. The lender believes that upward pressure on property prices will decrease in the short to medium term as more properties come onto the market. It is interesting to see that the Nati...Read More
Will the return of stamp duty kill the housing market?
The stamp duty holiday for the UK housing market is set to end on 31 December and there are concerns that early 2010 could see a slump in demand and a slump in prices across the UK. There is no doubt, as with the UK car scrappage scheme, there has been significant manufactured demand in the UK housing market primarily because of the extended stamp duty holiday. But is the UK property market able t...Read More