First Time Buyers Fear Property Market Lock Out

HAMISH_MCTAVISH

Two-thirds of young people without their own home believe they have no prospect of getting on the property ladder, a survey has suggested.

But 77% of them still aspire to home ownership, the poll of 4,000 non-homeowners for the Halifax found.

An increase in the rental sector could widen the wealth gap between homeowners and non-homeowners, the report concluded.

Higher deposits and tougher lending criteria have put off some buyers.

However, the report for the Halifax, one of the UK's largest mortgage providers, said there was "undue pessimism" among potential first-time buyers who feared having a mortgage application declined.

Some 47% of those surveyed, who did not own their own homes, said they would like to save for a deposit but had no spare cash to do so.

Nearly half of those who described themselves as having a realistic plan to buy within the next three to five years said they were unable to put aside enough for a downpayment.

However, Stephen Noakes, commercial director of Halifax Mortgages, told the BBC that the days of 100% mortgages were over.

But he said that mortgages for those offering a 5% deposit could come back to the market, and there were options such as shared equity schemes that could assist those trying to get on the property ladder
http://www.bbc.co.uk/news/business-13575857

shortchanged_2

Well it's not surprising with a still over inflated housing market.

doire_2

The guy who presents the business stories on BBC Breakfast said this morning that the highest home ownership in Europe were in Ireland, Spain, Portugal, Greece and the UK. And 4 of those countries are having massive economic problems.

However, Stephen Noakes, commercial director of Halifax Mortgages, told the BBC that the days of 100% mortgages were over.

Good. And should shut up those claiming they will return

But he said that mortgages for those offering a 5% deposit could come back to the market, and there were options such as shared equity schemes that could assist those trying to get on the property ladder

</STRONG>

95% mortgages could come back but will cost a fortune as discussed on BBC breakfast

abaxas

Looks like the mother of all crashes is brewing.

No market = no sales = panic pricing.

chucky

doire wrote: »

The guy who presents the business stories on BBC Breakfast said this morning that the highest home ownership in Europe were in Ireland, Spain, Portugal, Greece and the UK. And 4 of those countries are having massive economic problems.

do you think that it may just have maybe something to do with all of these countries not being able to devalue their currency along with their austerity measures?

FATBALLZ

doire wrote: »

The guy who presents the business stories on BBC Breakfast said this morning that the highest home ownership in Europe were in Ireland, Spain, Portugal, Greece and the UK. And 4 of those countries are having massive economic problems.

Did he give a reason for the correlation, or just that there is one?

And to be fair, didn't home ownership peak around the time we were last economically strongest (90s?)?

I suspect there's no real link between home ownership and economic power (or lack of).

thescouselander

Bad news indeed. As a home owner I would like to up-size some day and I can see this being difficult in the absence of FTBs to buy my house. To be honest i'm not surprised at the news though given the level of youth unemployment. House prices are only going one way IMO - downwards.

ukcarper

Also on BBC this morning Miles Shipside of Rightmove said they have seen searches for residential lets increase by two thirds and available properties decrease by a quarter causing rents to increase.

Percy1983

Personally I don't feel locked out, but I can say the elephant in the room which the article ignores is high house prices.

I can see the problem as a few years ago I could see many friends buying with 100% and 100%+ mortgages to which I can not get such deals. With that I know one now has 5% equity and 27 years left to pay and the other as got 20 years left to go anbd more or less no equity.

So when I look at them and see a year from now I will have 25 years left and 10% equity I realise as much as it seemed they where ahead, the reality is far from it.

DervProf

What's with the bold text Hamish ?

We can read your posts perfectly well without this added "enhancement".

I note that some of your posts were made in the early hours, maybe you're a bit "cranky".

new_home_owner_3

They reckon the average ftb now will be 38, i think this as shot up because the average earner who rents and needs to save a 20 percent deposit to get a decent mortgage as no chance in the near future.

The thing is these people who had probably got a 5% deposit in 2006 now need a 20 percent deposit.

either the house prices will have to come down to them or the banks will have to start relaxing their lending.

i mean in 2006 someone with a 5000 pound (5%) percent deposit would get a decent rate of just above 5 percent on a 100,000 pound mortgage.

To get the same rate now with a 5000 pound deposit, the house would have to be 50,000.

its a real shame for people to have to put their lives on hold, im sure the banks will start lending again, well i hope so anyway for all the first time buyers out there who just missed out 4 years ago.