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.
Stealth taxes to hit the property sector
In a move which is as much about protecting tenants as it is about raising additional funding, the UK government is currently considering a scheme which would see all landlords added to a national register. While presented as a way of highlighting rogue landlords and potential fraudulent activity, the £50 charge per landlord would raise a significant amount of money for the UK government without...Read More
Are first-time buyers dipping their toes into the market?
While there are differing opinions as to the current state of the UK property market, figures from the Council of Mortgage Lenders (CML) seem to indicate that the bank of mum and dad is being used more and more to fund the purchase of property for children. Interestingly, the last CML report on this subject back in 2007 highlighted the fact that 37% of first-time buyers under the age of 30 depende...Read More
UK house prices increase in January
The Nationwide report on the UK property sector has highlighted a growing trend which has seen UK house prices increase in value over the last year. A 1.2% increase in the value of property in January, compared to December 2009, brings the total annual increase to 8.6% between January 2009 and January 2010. But what does the future hold for the UK property market? In a move which will surprise...Read More
Downsizing more popular at 'top-end of the market'
Downsizing - where homeowners move from a larger property to a smaller one for financial or practical reasons - is far more common at the top-end property market, a spokesperson from property advisors Savills has said. Lucian Cook, director of residential property at Savills, said that "a relatively high proportion of people" with property worth around £1 million downsize when they move, often b...Read More
London commercial property back in vogue
It has been revealed that London's largest skyscraper, Tower 42, has been put up for sale by Blackrock and Hermes Real Estate. The asking price for London's largest skyscraper is in the region of £300 million and is one of a portfolio of property assets up for sale. It seems as though a weakness in the UK currency and a lack of high-quality office space in London has seen a sudden resurgence i...Read More