It isn’t steep house prices that are keeping first time buyers away from the housing market it is the on-going issue of strict lending criteria and completely unachievable deposits, which only bank of mum and dad seem to be able to afford, although how long that will continue remains to be seen.
Take into account the spending cuts as well and the opportunity of purchasing a property at around £150,000 still seems a little out of reach when a deposit of around £37,000 is needed, based on a mortgage LTV of 75%. More ‘Mission Impossible’ than ‘Little House on the Prairie’.
The average age that first time buyers can, reportedly, expect to be able to get on the property ladder is now around 38, although if you look at this article
the same age was being reported last year. Have things changed then? In a word, yes. There are signs out there that things are improving, albeit slowly, but there is improvement nonetheless.
First time buyers could soon be in a stronger position as house prices continue to vegetate, the potential to go in with a lower offer and the added advantage of not being involved in a lengthy chain will soon appeal to sellers who have been on the market for a considerable time. The number of mortgage products available to first time buyers has also increased by around 200, although many first time buyers have been left wondering if they will ever manage to purchase their first home.
Today’s Conveyancer, bringing you the latest conveyancing news and updates.