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.
UK house prices continue to fall
A report by Hometrack has today cast a very downbeat light on the UK property sector with news that the average price of a property in the UK fell by 0.4% in September to £157,600. While this in itself is obviously a concern for investors and homeowners it is the fact that prices are falling in every area of the UK, even London, which is more concerning! So far house prices in London and the s...Read More
Will an increase in social housing hold back the UK property market?
Leaks from the UK Treasury are suggesting that the UK government is set to put aside significant funding for social housing across the country. However, while there is no doubt that demand for social housing has never been higher, with more and more homes being repossessed and families thrown onto the street, there are concerns this could impact on the short to medium term potential of a property...Read More
US existing home sales fall to 15 year low
In a further reflection of difficulties currently being experienced by the US economy, it was revealed today that sales of existing properties fell to a 15 year low in the US. There was an unprecedented fall in the annual rate of existing property sales from June 2009 to June 2010 which equates to 27.2%! This is a dramatic fall by any standards and concerns regarding the shape of the US economy...Read More
Is the UK property market dead?
As the UK property market continues to come under severe pressure and head downwards there are many people suggesting that the market may not recover for anything up to 10 years. However, these are probably the very same people who believed that the boom times in the UK property market would continue indefinitely and never saw the current recession arriving on the UK shores. So is the UK property...Read More
"Astonishing" house price increases in London hotspots
Properties in prime central London locations experienced "astonishing" price growth during March, according to the latest market survey.Knight Frank says that during the last month, high-end properties in the capital increased in value by 3.1 per cent.This monthly increase means an annual growth rate of 32 per cent, the estate agent claims.Flats and penthouses from selected London areas worth more...Read More