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.
Prospects for the UK property sector
There was much attention focused on the UK property sector yesterday with hopes that the government would step forward with significant assistance and significant financial help for this vital area of the UK economy. As it happens Alistair Darling confirmed that the stamp duty holiday on properties with a value of under £175,000 was to be extended until the end of 2009 along with significant inve...Read More
UK house price rise runs out of steam
The Council of Mortgage Lenders in the UK (CML) has this evening suggested that while there has been significant interest in UK property, limited access to mortgage finance appears set to cut this improvement short. Confirmation that mortgage lending fell again in May was something of a body blow to homeowners in the UK and perfectly illustrates the fact that while there appears to be demand for U...Read More
Reality in the UK property market
A report by the Centre for Economics and Business Research will this week show that UK property prices are forecast to fall by a further 10% during 2009, ruining hopes of a short-term recovery. However, the Labour government will be pleased to hear that the report will also forecast a recovery in 2010, possibly just in time for the next general election. Slowly but surely it appears that Gordon Br...Read More
Royal Institution of Chartered Surveyors predicts buoyant 2009
The Royal Institution of Chartered Surveyors (Rics) has this evening suggested that the number of housing transactions in 2009 will show a significant rise over the 2008 figure. However, before homeowners begin to count their lucky stars, there is also a suggestion that house prices themselves will fall by a further 10% in 2009. The expected increase in transaction levels is more a case of bottom...Read More