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.
Why so much negativity over the UK housing market?
Today's Nationwide company report confirmed that UK property prices increased by 10.5% in the year to the end of April 2010. Despite the fact that the comparison was against a fairly sluggish April 2009 there is no doubt that UK property prices have improved over the last 12 months. However, there is still an air of negativity around the UK housing market, but why? For some time now many expert...Read More
Is the housing market beginning to turn down?
The Nationwide Building Society has today revealed that UK house prices increased in value by 0.5% in November with signs that demand for UK houses is starting to fall. While the figure could be slightly misleading because the winter period is often a very quiet period for the housing market, many experts believe that 2010 will see further falls in the cost of UK property. So should we be alarmed?...Read More
JJB Sports survives after creditors cave in
As we covered in one of our recent post, today was D-Day for JJB sports with a meeting of creditors to discuss a potential change in the company's leasing arrangements. Thankfully for the company, 99% of creditors voted in favour of the company's proposal, even though just 75% were required to push through the changes. It now appears as though the short to medium term future of JJB sports is secur...Read More
Can we believe the figures coming from the estate agent market?
Despite the fact that mortgage liquidity in the UK is still at near record lows the National Association of Estate Agents has released information this week suggesting that each property for sale is attracting four buyers. Many people are sceptical of such upbeat figures although they are based upon buyers registering their interest with local estate agents. So what do these figures tell us?
Is the UK turning into a rental economy?
Despite the fact that the first choice for many in the UK property market is to buy a property for the future, there are now signs that more and more people are looking to rent in the short to medium term. The Chartered Institute of Housing has today issued a report suggesting that those on incomes between £12,000 and £25,000 are stuck in between being eligible for social housing and been able t...Read More