I want to share with you a quick story.
Ryan lives a few doors away from his sister Lucy both moving in around 2 years ago renting at a similar price. Ryan's rent is now £850 pcm and just received notice from his landlord to leave whilst Lucy's rent is still £750 pcm and she is looking to buy some new carpets in the January sales whilst Ryan and his partner will be looking to find somewhere else to live.
Lucy and her husband are in a rent to buy house with a 4 year fixed contract and local house prices have gone up around £15,000 compared to the price she has agreed to buy at.. She also has the comfort of two more years before she needs to buy - in which time the house could go up even more.
Lucy took action and moved in to a rent to buy house that was not her first choice and does involve more travelling time to work - but she wanted a place of her own and was prepared to compromise - and now could make over £20k equity when she buys, has the comfort of a long term agreement on a house she has turned into her family home and buy in the future - whilst her brother Ryan keeps putting things off and now paying the price of moving from one place to another with higher rent and property prices getting further out of reach and being priced out of the property market and live time renter.
The moral of this story is to take action and do something today!
1.The Government help to buy scheme with a 5% deposit finishes this month so go see an independent mortgage broker for some advice and maybe a soft application that will not impact your credit score.
2.Make time to check out any available or new developments with shared ownership.
3. You are welcome to get back in contact with us regarding rent to buy but we will be working with a smaller number of serious people in 2017 that want to make things happen.
Hope this gets you thinking and doing!
Confidence in the UK housing market has returned to its pre brexit vote level with demand rising by 16 per cent in September according to the latest's housing report from the national association of estate agents.
Figures realised show the average number of house hunters registered per member branch has increased from 287 in August to 333 in September and comes as housing stock is starting to fall.
This report has also show a fall in sales to first time buyers that accounted for 23 per cent of sales in September and a fall of 5 per cent on August figures and the lowest level in 2016.
The governments help to buy scheme coming to an end this year could pose a threat to many first time buyers relying on this help to get a foot on the property ladder with a 5 per cent deposit.
The report shows the number of properties available for sale may be down slightly the number of sales rose by around 12.5 per cent per branch in September and shows buyer confidence is growing that could see property prices continue to rise, which may not be the message first time buyers want to hear.
More information is available on this website to help first time buyers get on the property ladder and move in without a mortgage or massive deposit - Registered for your free videos today.
The struggle for home ownership in London and the south now appears to be heading north with Manchester in particular having seen the sharpest fall in home ownership since the peak in the early 2000s according to recent reports that have grabbed the headlines of many news papers and breakfast TV.
Resolution foundation commented that homes were becoming unaffordable for many potential home buyers.
Greater Manchester is reported to have seen the proportion of home owners drop from 72 per cent in April 2003 to just 58 per cent in 2016
The metropolitan area of West Midlands along with West Yorkshire and outer London also reporting double digit falls in home ownership.
A chief economist explained the fall in home ownership could be down to income simply not keeping up with house prices and no longer having access to relatively easy credit that has been turned off.
Looking back in time and the average first time buyer paid just under £30,000 for their first home in the 1980s today a comparable property would be closer to £150,000
Data was also uncovered showing the total number of buyers has fallen by a third in the last ten years. Those who have been lucky enough to buy have done so with help from the bank of mum and dad.
The report showed home ownership in England peaked in 2003 at 71 per cent and has now dropped to 64%. Scotland peaked at 69 per cent in 2004 and now at 63%. Wales at 75% in 2006 and now down to 70% and Northern Ireland peaking in 2006 at 73% and now down to 63%.
London and the South East has seen people struggle to get on the property ladder for some time, but now appears to be a growing problem in cities across the north of England as well with Greater Manchester having seen one of the sharpest falls in home ownership with Leeds and Sheffield also reporting sharp falls.
So all this doom and gloom does not paint a rosy future for first time buyers and others keen to own a home – but there is some light at the end of the tunnel and you can find out about a new easy way to get on the property ladder and side step some of the issues that may have held you back – by simple registering on our website and get the free videos currently available.
News reports show home ownership for the under 45 age bracket has declined sharply since the global financial crises, with older age groups having maintained or is some cases increased their level of property ownership.
The report shows that in 2003/2004 around 64 per cent of this age group owned a home some 8 per cent less then the average home ownership rate across all ages.
Moving forward to 2015 and only 45 per cent of the under 45 year old age group were homeowners a substantial drop on the early figures and could be blamed on the financial crises with in that time period. However in this same time period 2015 the over 65 age group home ownership increased from 71 per cent to 77 per cent.
Rising house prices that require substantial deposits and income to tick all the boxes to secure a mortgage that for many has been more challenging particularly in the South may have played its part for first time buyers keen to get the first step on to the property ladder.
The report also goes on to mention that according to credit rating research by a leading company shows loan to income ratios of borrows in the south of England over the last 2 years can be up to 30 per cent higher then in northern parts of the country.
The report goes on to mention 70 per cent of first time buyers have a loan to income ration of there and a half times income or in many cases more and often borrowing at the edge of their capabilities and highlight of the risk involved.
A recent article by a leading think tank highlighted the impact of surging property prices on the young, reporting 9 out of 10 Britons on modest incomes under the age of 35 could be frozen out of home ownership within the next decade.
The resolution foundation reported many aged 18 to 34 face the prospect of being permanent renters and home ownership could be restricted to the wealthy and elderly.
David Willetts former Conservative cabinet minister said that in 1998 more than fifty per cent of people aged 16 to 34 living in households with income of between 10% and 50% of the national average were able to buy their own home. In 2013 that percentage had dropped to 25% and was on course to drop to 10% by 2025 across the UK with London forecast to be closer to 5%.
The average price of a home in the England & Wales has reached the £200,000 mark according to a number of publications with land registry March figures showing just under £190,000 with the capital coming in at £534,784. We told the average first time buyer property has increased by around £18,000 in the last twelve months, an amount few could save to keep up with property prices, and private rented property is now at an all-time high with the average family home costing araound £800.00 pcm.
Average First Time Buyer Deposit £32,927
Government supported help to buy scheme as offered hope for many only needing to find 5 per cent of the property price, but what about the thousands of first time buyers that don’t tick all the boxes to qualify for one of these mortgages.
Research from one of Britons leading high street leaders has uncovered the plight facing first time buyers with the research suggesting they now need to find a deposit close to £33,000 on average to secure a home today. A rise of 88% from £17,499 back in 2007 to today’s figure of £32,927.
An amount even the back of mum and dad will struggle to support.
New mortgage lending criteria based on affordability has also put a squeeze on many would be home buyers, and self-employed people have also suffered.
Register With Us Free Today, for more information on the new easy way to secure a home you can one day own, and move in without a mortgage or massive deposit, the two main stumbling blogs holding so many hard working people back.
A number of towns and cities across England are becoming unaffordable black spots for first-time buyers according to new research, and will not come as a surprise to many.
Property prices in Brighton have increased by 463% in the last 20 years leaving only 9% cent of homes in the affordable category compared to 100% in 1995 according to this report.
The report also shows the average cost of a home across in England & Wales has increased by around 306% since 1995, with a typical property selling for 5.51 times more than the average first time buyer's annual income.
The London and closer to home Cambridge property market has always been more challenging for first time buyers with high property prices which has seen many move to surrounding areas and commute back into the city.
2016 has seen increasing property and private rental prices across the Cambridgeshire region including Peterborough that has seen areas like Hampton record some of the highest priced rental figures in its short history.
Help to buy is still offering hope for many new home buyers that tick all the boxes for one of this government supported mortgages but many are still not able to take advantage of the 5% deposit due to credit or income issues.
Rent to buy offers hope and light at the end of the tunnel for many would be home buyers, but need to act quick as this properties get snapped up first due to the low amount down and the opportunity to get the keys and move in without the need to apply for a mortgage for sometime.
You can register free today to find out more on the contact page.
Alarming news for would be first time buyers as research has shown they will now need a deposit worth £33,000 on average according to the findings of the Halifax.
This shows a rise on the average first time buyer deposit of 88% from £17,499 in 2007 to £32,927 in 2016 and as property prices continue to rise is not good news for those keen to get on the property ladder.
Average price paid by first time buyers increased by 10% in the last year from £172,560 to £190,000. The highest increase was in Greater London at £367,990 with East Anglia shows the average first time buyer paying £178,305 and the East Midlands at around £138,000
The research also found that many people are looking to increase the mortgage period from 25 years to 35 years
The only bonus is lower mortgage interest rates and the help to buy scheme with 5% deposit that does require a good credit rating that some may not be able to provide.
You can register with us free today to keep up to date with the new easier ways to get on the property ladder by going to the contact page.
It is reported that many first time buyers who buy a property in 2016 will have already spend over £50,000 on rent according to research for a landlords trade body. This amount could increase to over £60,000 for those starting out renting now by the time they get a home of their own according to the ARLA.
It does not get any better for would be first time home buyers when you factor in rising house prices which will mean higher deposits and greater income to tick all the boxes to get a mortgage.
Demand for properties and short supply of stock in some parts of the country is pushing prices up, along with second home buyers keen to buy before the stamp duty land tax increase in April 2016
The London and Cambridge rental market is now reported to be getting alarming unaffordable with far more prospective tenants then property currently available creating supply and demand and increasing prices.
What Next for First Time Buyers
Help to buy has offered hope for some but reliant on mortgage applicants with a good credit history and income. Shared ownership is another option but lack of new build properties on these schemes is only helping the few lucky enough to secure a property.
Rent to buy from the private sector will tick more potential buyers boxes without the need to apply for a mortgage to get the keys, and time to get your financial house in order prior to applying for a mortgage in 2 to 5 years. Like shared ownership a shortage of properties is the stumbling block and need to listen out for potential opportunities.
House prices are reported to have increase by over 7% on the 12 months up until November 2015.
The average house price in the UK is now around £288,000 up 7.7% in one year but wages have only grown 2.4%. This strong momentum in the property market could be down to a shortage of properties available and supply and demand creating this surge in prices.
The losers are those trying to get a foot on the property ladder and often now referred to as generation rent, the 20 to 39 age group finding it increasingly tough to get on the housing ladder especially in London and the south east seeing the highest property prices that requires the largest deposit and income to try and arrange a mortgage.
The government’s flag ship help to buy scheme for new homes has reported to be a critical factor under pinning the market according to property experts.
Record number of sales in the third quarter of 2015 with 2,252 sales mostly coming from first time buyers using the scheme, and once again raised the concern of fuelling the property market and rising property prices.
First time buyers and homeowners wishing to move up the ladder are given the opportunity of an interest free loan to top up their deposits, financed by the taxpayer, subject to affordability and number of others conditions to tick all the boxes, that unfortunately not all are able to meet.
Since the help to buy scheme was launched in early 2013 more than 62,000 properties have been purchased worth over a reported £13 billion with the help of the scheme and tax payer funded loans of around £2.5 billion. First time buyers are reported to make up 4 in 5 sales mostly with lower priced properties.
Fear is also growing as buy to let investors hurry to purchase property to avoid George Osbourne 3% increase in stamp duty for second home owners, along with new landlord taxes that could see a sharp rise in the cost of private rental and decline in future long term private rental property as many landlords are threading to sell up.
Most Expensive Road to Buy a House
Victoria Road in Kensington, London is reported to be the most expensive street in England and Wales, with the average property costing over 8 million.
Close to Kensington Palace and the Albert Hall the average property in Victoria Road costs £8,006,000 according to research from leading high street bank.
Kensington and Chelsea offers a glamorous lifestyle attracting many overseas buyers, and is home to twelve of the twenty most expensive streets.