First time buyers market will be dead for two years
A survey by the Co-operative Bank and Places for People has canvassed the thoughts and hopes of the next generation of first time buyers and the results do not look very encouraging. The survey shows that the vast majority of first time buyers feel that they will need to stay in rented accommodation for at least two years in order to save up an average deposit of £19,100.
The news is not only a bitter blow to the first time buyers market but a hammer blow to the housing sector as the first time buyers are the life blood of this market and there were high hopes that they would be the catalyst to get the markets moving again. It now seems as though a mixture of a rising cost of living and mortgage provider insistence upon higher deposits will literally set many potential home owners back years.
Apart from the fact that we have not even reached the bottom of the current downward cycle in the property sector this would suggest that any meaningful recovery is still at least two years off. But how many home owners will face financial hardship and possible repossession in that time?
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