First time buyers priced out...

Sibley

As per article.

I don't agree an average FTB is £136,000. They should cut their cloth to suit their purse. I reckon you could pick up a decent flat in most areas for £100,000. Easy for 2 people working.

I really do not understand why the bears don't team up and buy a place on a 50/50 deal. Makes sense to me.

NEARLY a million first-time ­buyers have been prevented from getting on to the housing ladder because of the big deposits required by lenders.


Read more: http://www.express.co.uk/posts/view/2382291m-first-time-buyers-frozen-out-of-market#ixzz1IKOD6o9P

HAMISH_MCTAVISH

Sibley wrote: »

NEARLY a million first-time !buyers have been prevented from getting on to the housing ladder because of the big deposits required by lenders.

What an incredible statistic.

A million FTB's locked out of housing by the crash.

Absolutely remarkable.

No wonder rents are soaring.

geneer

In other words competition for those sensible FTBs with decent deposits has been drastically reduced. Good stuff.

What does reduced demand do for house prices I wonder?

This really is sterling news. Thanks for sharing chaps.


Yawn.

davilown

Sibley wrote: »

As per article.

I don't agree an average FTB is £136,000. They should cut their cloth to suit their purse. I reckon you could pick up a decent flat in most areas for £100,000. Easy for 2 people working.

I really do not understand why the bears don't team up and buy a place on a 50/50 deal. Makes sense to me.

NEARLY a million first-time !buyers have been prevented from getting on to the housing ladder because of the big deposits required by lenders.


Read more: http://www.express.co.uk/posts/view/2382291m-first-time-buyers-frozen-out-of-market#ixzz1IKOD6o9P

What's the avergae age of a FTB nowadays? What percentage of those have children and wouldn't fit into those flats you're talking about?

As Geneer said, less people to buy, lower house prices - in the meantime, Hamish has correctly stated that this will increase demand for rental properties until the house prices fall/stagnate back to a reasonable range.

Well done for backing up everyone elses arguments and leaving your's wide open.

abaxas

Love the way it's always 'work more and pay more' instead of 'build more'.

It's called protectionism BTW.

julieq

Once again, you don't need first time buyers to sustain the housing market because the market is sustained by rental yields based on overall demand for housing, which is high by international standards. At some point this realisation is going to dawn on people: the high rate of owner occupation since the 1980s is an anomaly not a norm, and in order for it to revert back to trend people will be necessarily excluded from the market while the relative proportions shift.

The tragic part of this is that despite what the bears say, affordability for a couple is good in most parts of the country and the only thing pricing them out is mortgage rationing. It must be extremely frustrating for prospective first time buyers, seeing low rates and fairly stable pricing and not being able to get anywhere near deposit requirements.

Running_Horse

Once genuine price competition returns to the mortgage market, and the rules on deposits are relaxed, I suspect prices will rise sharply again. I hope I'm wrong, but have been around long enough to see these things go in cycles. And the change usually comes just when you are getting used to one cycle, and begin to think it a permanent state of affairs. You can't hold back pent up demand forever.

Jimmy_31

Running_Horse wrote: »

Once genuine price competition returns to the mortgage market, and the rules on deposits are relaxed, I suspect prices will rise sharply again. I hope I'm wrong, but have been around long enough to see these things go in cycles. And the change usually comes just when you are getting used to one cycle, and begin to think it a permanent state of affairs. You can't hold back pent up demand forever.

This is what im afraid may happen, if the banks start throwing money at people again then the people WILL take it and consequently make themselves pay more and more for housing. I always hear people blaming the banks for this whole mess but in my eyes they only take half the blame, the rest of the blame lies in the hands of the people who took out massive mortgages way above their pay scale because the media told them they would be priced out if they didnt buy NOW.

Thank god i didnt fall for the scam because i would hate that a greedy rich banker and the media tricked me into a massive amount of debt and always have that gnawing away at me in the back of my mind.

Thrugelmir

Sibley wrote: »

I reckon you could pick up a decent flat in most areas for £100,000. Easy for 2 people working.

So you agree that its not so easy for single people to purchase.

At least 2 people purchasing every property would utilise scarce resource more efficiently.

chucky

FTB's aren't priced out, if they were priced out they couldn't buy any property at all.

FTB's choose to be priced out because they're aspirations of the property they think they should buy n the area that they want is not achievable.

Jimmy_31

chucky wrote: »

FTB's aren't priced out, if they were priced out they couldn't buy any property at all.

FTB's choose to be priced out because they're aspirations of the property they think they should buy n the area that they want is not achievable.

Im a FTB and due to me saving a large deposit i am not priced out, i can quite easily buy a starter home in the area that i was born and raised but i am still not willing to pay sellers prices, this isnt me thinking i should be getting a massive home in a perfect area for peanuts its just me not willing to pay the price that the banks and boom buyers have set.

I work very hard for my wages and cant bear for a vast part of it to end up as a bankers bonus, maybe im just too old fashioned by being careful with my money.