It’s a great time for first time buyers
Do you know, during the month of August this year in the UK, there were over 42,000 loans agreed for house purchases and of those, first-time buyers made up over 15,000 of the total. Of course that is down nearly 60% on August last year.
An here’s another statistic to show how clever you are down the pub tonight: Those entering the property market for the first time on average borrowed 84% of their property’s value and 3.18 times income, down from 90% and 3.39 respectively, during the same month of 2007. (info from www.financemarkets.co.uk)
Since August things have changed because of the credit crunch and the tightening of the interbank lending, but with the Uk government pumping loads of dosh, (our dosh) into the system, things should get easier for all including first time buyers.
The price of houses across the Uk will still have to come down by 10% or in some cases 15%, maybe even more, back to late 2006 prices and this is good for first time buyers.
In one of my local towns, Farnborough Hants, there were 1 bedroom flats on the market at 179k, these have been reduced to 160k and many of the same developement wil be sold to the local housing association who are in short supply.
So when the market bottoms out, early next year, I think we will see a boom in first time buyers. But the value in property may not have such a meteoric rise. Which is good for everyone.
So first time buyers out there, its time to brush up on your negotiation skills and start looking for bargains
Michael
https://www.mu-mortgages.com/
