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.
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
More Brits buying abroad
More than a quarter of a million Brits currently own a property abroad, and one-third of the population would like to buy a home overseas, new research by Natwest claims. A third of both current and potential overseas homeowners told Natwest that they thought that owning a holiday home would make holidays more affordable, while a quarter felt it would take a lot of the stress out of arranging a br...Read More
Is The Buy-To-Let Market In Trouble?
Over the last few years we have seen the creation of a number of buy-to-let empires by private individuals who have taken advantage of the increase in house prices and the expanding rental market in the UK. However, with rental income used to fund the growth of many of these empires there are concerns that some investors may see their portfolios collapse like a pack of cards.
Will the young of today ever climb onto the property ladder?
While on the face of it there would seem to be an increase in competition within the UK mortgage market there is also no doubt that first-time buyers are still significantly handicapped when applying for mortgage funding. Despite promises to the contrary, the amount of money required as a deposit on any property purchase is now well in excess of 20% and has increased significantly over the last fe...Read More
Experts gloomy on property slowdown
The current property downturn might wipe 20 per cent from the value of UK homes, a new poll indicates.This was the average forecast for the house price decline from a panel of property experts contacted for the survey by news agency Reuters.Analysts at banks, investment firms and research institutions were all among the poll respondents.Some of the experts even expected a drop in housing value of...Read More