Kate Faulkner’s FTB analyses highlights myths of Landlord effect on market

by Property118.com News Team

11:27 AM, 24th April 2017
About 2 years ago

Kate Faulkner’s FTB analyses highlights myths of Landlord effect on market

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Kate Faulkner’s FTB analyses highlights myths of Landlord effect on market

Kate Faulkner has released a summary of First Time Buyer (FTB) market data showing a rise in FTB activity, the bounce post credit crunch and the myths of media reported data.

To see Kate’s full First time buyer price report – April 2017 please Click Here

Kate comments on the data in her report that; “there is a vast difference between the actual data and the reports that are often released by PR companies to campaign and gain footage in the media.

“For example, two complete myths which can be exploded are, firstly, the falls in numbers of first time buyers. When you look at the English Housing Survey data, the biggest year so far in ‘recent first time buyers’ ie the numbers that have bought in the last three years, saw its biggest levels in 2013/14, 2003/4 were similar, but not as high. This is likely to be due to the ‘post recession’ bounce after 50% of first time buyers had rightly left the market during the credit crunch when property prices had fallen so much.”

Kate also shows that despite widespread hysteria for generation rent the average age of a FTB has only gone up from 31.4 in 2003/2004 to 32.4 in 2015/2016.

Click Here to download Kate’s report.



Comments

Dr Rosalind Beck

11:54 AM, 24th April 2017
About 2 years ago

This myth was repeated again just this morning on the news, with the 'expert' opinion of Sam Mitchell at Rightmove, that the 3% stamp duty levy had led to a slump in BTL which meant that FTBs could now get the 1 and 2 bed properties that previously 'investors' would have snapped up. In fact, as we see, the numbers of FTBs have been increasing for years, completely independently of the Government's war on landlords; in addition, independent researchers in the LSE found that in the main FTBs and landlords are interested in very different properties with little cross-over. I can vouch for that, anecdotally, as I have houses in poorer parts of the valleys where my tenants are likely to always rent and never own - just as my father never had a penny left by Sunday night (before picking up his dole on Monday morning). There are millions of people like this and they are not looking to own. These people are being forgotten and lost as the Government variously fetes potential owner-occupiers and large build to rent institutions who will not cater for the low-paid and/or those on benefits.

Luk Udav

13:11 PM, 24th April 2017
About 2 years ago

My reading of Table 1.6 is that the number of FTBs has gone down a lot. But it depends when you start.

If we are going to be anecdotal, of the last block of a dozen 2-bed flats I sold, over half went to BTLs moving out of London or Hong Kong, the rest FTBs. Clear overlap and competition between them.. The 3% is a nuisance to the BTLs, but write it off over 5-10 years and it's negligible so not really a deterrent. What the 3% did is really hurt the business of buying poor quality houses, doing them up and selling them, thus helping regeneration (or gentrification if you want to spin in that way!). With VAT on the costs - none for new build of course as the builders pay the Tories - it makes the margins thinner. Less regeneration, more pressure on the Green Belt. Real joined up thinking - not.

Ms Faulkner is right in attacking lazy journalists and those with skin in the game. But doesn't she have the latter?


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