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.
Mixed Signs In The Property Market
After months of complete mayhem in the financial markets it seems that some kind of liquidity may be returning to the sector. HBoS has announced that they found investors to take up their recent £500 million mortgage bond issue Ã¢â‚¬" something which would have been unheard of only a couple of weeks ago. The bond issue is linked to residential mortgages and many experts are seeing this...Read More
Welsh property market under pressure
In line with the rest of the UK, it is being reported by the Royal Institute of Chartered Surveyors that estate agents in Wales have seen property prices soften. Apparently a flood of properties to the market is placing more pressure on the Welsh property market with 30% more members of the Royal Institute seeing property prices falling rather than increasing. Welsh property prices are now at t...Read More
London on top of the world
Property prices for luxury homes in London exceed those of all other cities in the world, according to estate agent Knight Frank, with the price per square foot of prime properties in the capital averaging out at £2,300.Properties in Belgravia and Knightsbridge cost the most, with an average £3,000 asking price per square foot.Such figures mean that the cost of London's properties exceed those o...Read More
Govt 'gives go ahead to flood plain housing'
The government is expected later today to give its blessing to plans to build homes on flood plains.Ahead of the publication of its green paper on the housing shortage affecting the country, housing minister Yvette Cooper said that houses would only be built in areas prone to flooding if the proper defences were in place.Her comments come after torrential rain and freak storms left large parts of...Read More
Is It Time To Look At Buy To Let?
As the housing market continues to fall and the news seems to get worse there is a feeling that the bottom of the market may not be far away, but is it time to buy? Is it time to look at the buy to let market?
While the truth is that nobody knows if we are at the bottom of the property slump, or whether we have some way to go yet, the signs are not good. Many investors are still si...