MSE News: First-time buyers at 20-year low

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The number of first-time buyers in the UK remained at near 20-year lows over the past 12 months ..."

Read the full story:


First-time buyers at 20-year low

Castleman

Not really a surprise given the multiplies between average salary and the asking price for even a small property across the country.

The surprising thing is that people are still refusing to lower their asking prices and expect their paper gains to be turned into cash gains when selling.

steve237

Castleman wrote: »

The surprising thing is that people are still refusing to lower their asking prices and expect their paper gains to be turned into cash gains when selling.

I don't see why this is surprising. More often than not, people will be moving to another house and the chances are they won't be lowering their asking price either.

coley54321

What gets me is that firstly the media (through some vested interest I feel), refuse to report the possibility that perhaps house prices are too high! Shock horror.

Secondly, that people in this country believe it is their god given right to buy a house and see it's value increase. They refuse to accept that, just like anything else e.g. pension funds, stock markets, house prices are a market that SHOULD be able to move down as well as up!!

The media put a spin on the true situation. The real situation is that the house prices need to correct to 3x salary level for anyone to be able to afford to buy. The amount of freely available credit over the last decade was wrong, but so were the people stupid enough to live beyond their means. The prudent amongst us shouldn't have to suffer because this.

Lets not forget that a house is people's fundamental right to shelter, before it should ever be considered an investment vehicle.

johnnybrando

As a young single male, I doubt I will be able to buy for many years to come. My parents dont have the money to help with a deposit. I currently rent, which costs a fortune, so I'm unable to save very much either. The government has done nothing to help first time buyers....What are our options please?

xemmax

I'm 23 and currently trying to save for a deposit. I would love to move out in the next year or 2 but it is looking doubtful. My partner is self-employed with an ever varying annual wage and my wage isn't that great either so i suspect i won't even be offered a mortgage anyway so i wonder why i am bothering to save.

nembot

Look's like bank of mum & dad has finally ran dry, realistic prices are now looking more likely.

Unless people don't actually want to sell and keep their houses on the market forever.

Castleman

xemmax wrote: »

I' so i wonder why i am bothering to save.

At 23 you've got plenty of time to save and when conditions are more favourable, buy. Just keep saving what you can (it's what we've done and now, bit by bit, actually have a decent deposit)

Castleman

nembot wrote: »

Unless people don't actually want to sell and keep their houses on the market forever.

Although anyone upsizing would also benefit from this, the only ones who wouldn't are those that are downsizing. These are in the majority people who have lived in their houses for a long time (people retiring, family moved out etc), so even so would see a decent gain on original prices if they've lived there for more than 5years.

Fab26

I am 26 and my partner is 29 and we have been saving for a deposit for nearly 2 1/2 years, living a frugal life at my parents home. It hasn't been easy, and the prospect of being refused a mortgage after saving for so long is really disheartening (We have been refused before, but due to having a small deposit)...we hope that by next year prices are more affordable, but you never know with this ridiculous prices, it's just nearly impossible!!

MoneyMiser

I think we should see a return of 95% mortgages or dare I say 100% mortgages!!

This would help raise the level of FTB's!

MM