Tag Archives: First time buyers

NAEA want more government help for buyers Landlord News, Latest Articles, Property Investment News, Property Market News, Property News, Property Sales & Sourcing

The National Association for Estate Agents is calling for more support for first time buyers as the property market continues to struggle. They believe the boost from below will ripple upwards, stimulating the whole market.

Mark Hayward, President of the NAEA, said: “Assisting those seeking property at the start of the ladder could help to generate upward momentum in the market. The Stamp Duty Holiday provided a degree of breathing space and without it the prospect of homeownership will mean more months of saving for many people. Continue reading NAEA want more government help for buyers


CBI Challenges Government to Kick Start Housing Market Latest Articles, Property Investment News, Property Market News

Monopoly houses on piles of Pound coins

"CBI want the Government to do more to restart the misfiring economy"

The government should remove the financial and planning constraints that are throttling the housing market in a bid to boost the economy, industry leaders have urged.

In a keynote speech planned to influence Chancellor George Osborne’s autumn budget statement, Confederation of British Industry Director General John Cridland spelled out what employers want to see. Continue reading CBI Challenges Government to Kick Start Housing Market


Buying is Cheaper than Renting in 90% of Towns House Prices, Latest Articles, Lettings & Management, Property Investment Strategies

1 green property amongst a row a red properties

"Renting is more expensive, but you need the big deposit to avoid it"

The falling cost of buying a home over the past 12 months coupled with demand pushing up the cost of renting has made buying cheaper than letting in 45 of 50 major cities, according to Zoopla.

Providing buyers can raise a deposit and mortgage, it is on average 13% cheaper than renting a similar property.

The cheapest places to live compared with renting are Milton Keynes by 39%, Birmingham (34%), Northampton (33%), Warrington (32%) and York (29%).

The study based calculations on buying or renting a two bedroom flat.

Renting in London is an average 28% more than the cost of owning. A flat costs £430,608 in the capital, leaving renters paying £5,964 more a year than owners pay for a mortgage.

Nicholas Leeming, business development director of Zoopla, said: “With house prices down, low interest rates and sky high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage.

“And with owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to buy in recent times.”

A separate study by surveying firm E.surv pointed out that the cost of renting will keep rising until the banks can offer more accessible mortgages to buyers.

Director Richard Sexton said: “The banks are being held back by weak economic growth and the spectre of a double-dip recession, as well as the regulator’s insistence they hold more capital. They are in no mood to target first-time buyers.”

“While more buyers able to secure a deal with an 85 per cent or higher loan-to-value than at any point since May 2010, this is not happening on a large scale.”


Tenants Destined for a Life of Rent Latest Articles, Lettings & Management

Young man with a house in thought bubble

"More are worried they'll never own as the first-time buyer age increases"

Around 85% of first time buyers are worried they will never buy a home – and blame buy to let landlords for a lot of their problems.

They feel landlords are blocking their way on to the property ladder by snapping up affordable homes to add to their rental portfolios.

The would-be buyers are also angry that the banks are demanding deposits that are beyond their reach and home prices are too high, according to a study by online advisor FirstRungNow.com.

Helen Adams, managing director said: “Young people today living in rented property are facing great difficulties taking the first step towards buying their own home.

“One of the problems is that one and two bedroom flats and houses are the favoured target of landlords, thereby pushing these properties out of reach price-wise and first time buyers are worried about the effect of not being able to afford their first home.”

The poll also revealed 9 out of 10 young adults who want to buy a home consider too little help is offered by lenders and the government.

“With the launching and withdrawal of various schemes over the last few years it’s easy to be confused, but the government does offer shared equity and shared ownership first time buyer schemes across the country to key workers and those households with an annual income of below £60,000. Outside that, help with the deposit should be sought from parents or grandparents,” said Adams.

Separate research by The Halifax shows the average age of first-time buyers is increasing.

The youngest first-time buyers are in Selby, North Yorkshire, where the average age is 25, while the eldest in Harrow, North London are 34 years old.

Nitesh Patel, housing economist at Halifax, said: “There are several areas where the average age of first-time buyers is three to four years below the national average.  Most are in the north, where house prices are lower, helping to limit the size of the deposit needed.

In London and the South East, the time needed to save a deposit can be lengthy, resulting in first-time buyers who are typically several years older than in the rest of the country.”


BoE find buy to let still on the up Latest Articles

Bank of England Logo

Buy to let up as housing market is subdued

The Bank of England’s Agents’ summary of business conditions June findings have further emphasized the sluggish activity in the housing market, but buy to let continues to thrive.

The smaller properties, usually expected to be bought by first time buyers, have been picked up by buy to let investors capitalising on the market of renters. Continue reading BoE find buy to let still on the up


Home ownership beyond reach of ‘Generation Rent’ Buy to Let News, Latest Articles, Property Market News

Couple looking at house made of clouds

Home ownership beyond reach of 'Generation Rent'

High housing costs are hitting ‘Generation Rent’ hard, leaving them struggling to make ends meet. When utility bills, council tax and insurance are taken into account, individuals renting in London are left with as little as 25 per cent of their net income after housing costs. With little spare cash available, this generation is exposed to rising living costs, and unable to save for the future.

In a survey carried out by YouGov for Chartered Institute of Housing (CIH), 21 per cent of respondents overall said they were spending more on running their home than they could afford – equivalent to just over 10 million people in the UK. The proportion of people paying more than they could afford increased for respondents living in private rented homes – 31 per cent. Continue reading Home ownership beyond reach of ‘Generation Rent’


Property paupers will rent for life, predicts think tank Buy to Let News, Latest Articles, Property Investment News, Property Market News

Couple looking up at house of cloudsMillions of would-be householders will turn in to a generation of property paupers as all hope of buying a home slips away from them, according to a new study.

The research says the property door will shut on around 2 million people who will have to rent instead of buy.

The scenario is part of a report by the influential policy think tank the Smith Institute. Continue reading Property paupers will rent for life, predicts think tank


66 percent of adults under 45 years old have given up any thought of buying their own property Buy to Let News, Latest Articles, Mortgage News, Property Market News

Couple being given keys to their first homeThe pattern of home ownership in Britain is undergoing a major upheaval with nearly two thirds of adults under 45 years old giving up any thought of buying their own property.

Buying a home seems beyond the grasp of this age group as 95% say they have no spare cash, no interest in saving for a deposit or have given up on trying to save the money they need to secure a purchase. Continue reading 66 percent of adults under 45 years old have given up any thought of buying their own property


Buy to let wins as lenders dump first time buyers Buy to Let News, Latest Articles, Mortgage News

Model Houses For rent signThe buy to let market will ride on the crest of a wave for another two years as mortgage lenders revealed they do not expect to help first time buyers for possibly years.

That bad news leaves thousands of expectant homebuyers adrift in the property market with letting as the only real option for setting up home.

The message from the UK’s banks and building societies is a clear ‘closed for business’ to first time buyers. Continue reading Buy to let wins as lenders dump first time buyers


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