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.
Nationwide warns on UK housing
After reporting pre-tax profits of £117 million for the six months to 30 September, a fall of 63% on the corresponding period last year, Nationwide has today warned of "inevitable downward pressure" on UK house prices next year. This is a stark warning from a company which is well respected in the UK property sector and would appear have its " finger on the pulse" of the UK housing market. So wha...Read More
Are first-time buyers deserting the UK property market?
Figures released by the National Association of Estate Agents show there has been a significant reduction in the number of first-time buyers involved in the UK property market over the last six months. Just six months ago, 43% of all registered purchases were on behalf of those looking for their first home while last month this figure fell to just 19%. The figure of 19% matches the record low reac...Read More
Home repossessions on the rise in the UK
While news that home repossession were up some 71% in the second quarter of 2008 have caused some unrest in the markets, this will be chicken feed compared to the number that will lose their homes before the economy recovers. Just over 11,000 homes were repossessed in total during the quarter but with the Bank of England suggesting that both negative equity and mortgage defaults are set to rise d...Read More
CML cuts repossession forecast
The Council of Mortgage Lenders (CML) has today adjusted its forecast for the total number of housing repossessions in the UK for 2009 to 48,000. This further adjustment is a startling difference to the 75,000 which the CML forecast for 2009 back in mid-2008, when the market was in trouble. Indeed, the CML gave an indication it actually thought, at the time, the figure could be substantially high...Read More
8,300 people at risk of home repossession every week
05/06/2015 More than 8,000 people in the UK were put at risk of losing their house each week in the first three months of this year, according to housing charity Shelter. The charity looked at Ministry of Justice figures for possession claims by mortgage lenders and landlords to see how many people had been threatened with repossession. The charity also picked up on certain “home threat hot...Read More