First-time buyers cannot buy
Added: (Wed Apr 23 2008)
Pressbox (Press Release) -
First-time buyers cannot afford to make it onto the property ladder, potentially leading to many people seeking a fast property sale.
According to the latest Shelter report on housing, house prices for first-time buyers have increased by 200 per cent in the last ten years.
Although this may seem like good news for homeowners, a lack of affordability means fewer buyers are entering the market are prices are beginning to fall.
With this in mind, many people may seek a fast property sale in order to avoid selling at a lower value.
Recent figures have shown that house prices are beginning to drop and to make matters worse, it is becoming more difficult to take out a mortgage.
"These new figures show in full the true and worsening situation first time buyers find themselves in," said Adam Sampson from Shelter.
"Despite falling house prices, many lenders are increasing their mortgage rates, making an already desperate situation worse.
"It means there is a generation of young people and young families being locked out of the housing market," he added.
Julian King of National Homebuyers says, "The deliberately difficult conditions on getting a mortgage not only affects first time buyers, but those moving house.
"As FTBs traditionally accounted for 45-50 per cent of all property transactions, this huge lack of buyers will force homeowners to sell at well below the already deflated price they were expecting in order to achieve a quick sale".
Mr King is a director of National Homebuyers, the UK's leading quick property purchase firm. The company guarantees to make an offer to purchase any property in the UK for homeowners who need a quick sale. The company also provides a series of mortgage rescue solutions such as 'Sell and Rent Back' for property owners who are facing repossession.