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.
Average house price fell by £6000 in September
The average price for a property in the UK now stands at £162,092 which represents a £6,000 fall between August and September. There is now growing concern that the UK property market has peaked in the short-term and against a backdrop of difficult economic statistics there is very little chance of a short-term recovery. However, the consequences of a £6,000 drop in the value of property in the...Read More
First-time buyer numbers at a 20 year low
The number of first-time buyers in the UK property market hit a 20 year low in the year to February with just 347,000 new entrants to the property market. While this compares a little more favourably to the 331,374 a year earlier it is well below the figure of 700,000 back in 2004/05 and perfectly reflects the difficulties facing the UK property market. There are also concerns that the UK gover...Read More
Why is the UK property sector so important to the economy?
Over the last few years it has become more and more apparent that the UK property market is effectively the tail that wags the dog of the UK economy. Every economic bailout, every fiscal policy and every government initiative aimed at the consumer market would appear to have the property sector in mind. The truth is that the vast majority of individual wealth in the UK is tied up in the UK propert...Read More
Are the days of private landlords numbered?
The ongoing demise in the UK buy to let property market has hit many private individuals very hard after a relatively lucrative last decade. While it's true that many individuals have made significant returns over the last 10 years there is a growing feeling that large corporations and large investors will swamp the sector in the short, medium and longer term. There are concerns that the so-called...Read More
Redrow seeks to start building homes again
After a period of significant unrest and a collapse in demand for UK homes it has been revealed that UK house builder Redrow will soon begin building again. Steve Morgan, the original owner of Redrow, who recently regained control after a boardroom coup, has revamped the company's strategy and announced a wish to take advantage of any recovery in 2010. This is by far the most positive sign we have...Read More