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17/12/2012
One In Four First-Time Buyers Take Ten Years To Raise Deposit
More than one in four first time buyers say that it will take them ten years or more to raise the necessary deposit to buy a property, say the Building Society Association (BSA) in their 19th edition of Property Tracker, published today.
However, 26 per cent of potential buyers surveyed at the end of 2012 believe that they can raise a deposit in three years or less. This is in stark comparison to the 69% who said they did this before the start of the credit crunch in 2008.
Since September 2010 raising a deposit has consistently been the biggest barrier to property ownership right across the spectrum of homebuyers. Looking ahead to 2013, nearly a third of first-time buyers are pessimistic about their chances, believing that things will only get harder next year. Most are reliant solely on their own savings, rather than the bank of mum and dad, to raise a deposit. Below inflation wage rises, higher rents and the increasing cost of living are all making saving harder.
Although deposits are plainly still an issue, access to mortgage finance has eased with less then half of the public (45%) now saying that it is a barrier to property purchase – the lowest since the BSA started tracking consumer views on home purchase in 2008.
Looking ahead to 2013, amongst those planning to buy for the first time in the future, 23 per cent said that they believed they would be living in a property that they owned by the end of the year, whereas 73% said they would still be renting or living with family or friends.
Since the credit crunch owner occupation has been falling in the UK, down from 14.7 million to 14.5 million households between 2007 and 2011. This is backed up by 2011 Census data released last week.
Commenting, BSA Head of Mortgage Policy Paul Broadhead said: "Buyers and lenders alike are adjusting to a new kind of normal in the UK housing market and the headwinds generated by a weak economic environment mean that it is here to stay right now. It is, however, a complete myth that no first time buyers are getting their feet onto the housing ladder. Between January and October 2012, building societies and other mutual lenders helped 22,000 more first timers buy their own home than in the same period last year, with around one in every three mortgages made to this group. Mutual lenders have contributed most of the net lending in the UK this year as some banks have shrunk their balance sheets."
(CD)
However, 26 per cent of potential buyers surveyed at the end of 2012 believe that they can raise a deposit in three years or less. This is in stark comparison to the 69% who said they did this before the start of the credit crunch in 2008.
Since September 2010 raising a deposit has consistently been the biggest barrier to property ownership right across the spectrum of homebuyers. Looking ahead to 2013, nearly a third of first-time buyers are pessimistic about their chances, believing that things will only get harder next year. Most are reliant solely on their own savings, rather than the bank of mum and dad, to raise a deposit. Below inflation wage rises, higher rents and the increasing cost of living are all making saving harder.
Although deposits are plainly still an issue, access to mortgage finance has eased with less then half of the public (45%) now saying that it is a barrier to property purchase – the lowest since the BSA started tracking consumer views on home purchase in 2008.
Looking ahead to 2013, amongst those planning to buy for the first time in the future, 23 per cent said that they believed they would be living in a property that they owned by the end of the year, whereas 73% said they would still be renting or living with family or friends.
Since the credit crunch owner occupation has been falling in the UK, down from 14.7 million to 14.5 million households between 2007 and 2011. This is backed up by 2011 Census data released last week.
Commenting, BSA Head of Mortgage Policy Paul Broadhead said: "Buyers and lenders alike are adjusting to a new kind of normal in the UK housing market and the headwinds generated by a weak economic environment mean that it is here to stay right now. It is, however, a complete myth that no first time buyers are getting their feet onto the housing ladder. Between January and October 2012, building societies and other mutual lenders helped 22,000 more first timers buy their own home than in the same period last year, with around one in every three mortgages made to this group. Mutual lenders have contributed most of the net lending in the UK this year as some banks have shrunk their balance sheets."
(CD)
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08 December 2004
UK-wide rise in time taken to save for first house
It takes first time buyers six months longer to save for a house deposit when compared to the first quarter of 2004 and one year nine months longer than in 1994.
UK-wide rise in time taken to save for first house
It takes first time buyers six months longer to save for a house deposit when compared to the first quarter of 2004 and one year nine months longer than in 1994.
15 April 2009
House Purchase Lending Edges Up And Remortgaging Declines
The number of house purchase loans ticked up in February, according to new data from the Council of Mortgage Lenders (CML). There were 24,300 house purchase loans worth £3.1 billion, compared with 23,400 loans worth £3.1 billion in January - a 4% increase.
House Purchase Lending Edges Up And Remortgaging Declines
The number of house purchase loans ticked up in February, according to new data from the Council of Mortgage Lenders (CML). There were 24,300 house purchase loans worth £3.1 billion, compared with 23,400 loans worth £3.1 billion in January - a 4% increase.
20 April 2009
First Time Buyers 'Still Locked Out'
Tightening of lending means that first time buyers are still locked out of home ownership despite the fall in house prices, new research by Shelter's ROOF magazine has shown.
First Time Buyers 'Still Locked Out'
Tightening of lending means that first time buyers are still locked out of home ownership despite the fall in house prices, new research by Shelter's ROOF magazine has shown.
17 November 2011
First Time Buyers Taking 'Desperate Measures'
First time buyers are resorting to second jobs, personal loans or sharing new homes with friends as they struggle to get on the property ladder, according to new research. The study, by Santander Mortgages, has outlined difficulties many consumers are facing as they try to get onto the increasingly slippery property ladder.
First Time Buyers Taking 'Desperate Measures'
First time buyers are resorting to second jobs, personal loans or sharing new homes with friends as they struggle to get on the property ladder, according to new research. The study, by Santander Mortgages, has outlined difficulties many consumers are facing as they try to get onto the increasingly slippery property ladder.
27 September 2004
New plans set to get first time buyers on property ladder
Proposals to make better use of public sector land and help first time buyers have been outlined by the Deputy Prime Minister today. Smarter use of public sector-owned land and driving down spiralling construction costs would help people get onto the housing ladder, John Prescott said. Since 2003 the number of first time buyers has fallen by 27%.
New plans set to get first time buyers on property ladder
Proposals to make better use of public sector land and help first time buyers have been outlined by the Deputy Prime Minister today. Smarter use of public sector-owned land and driving down spiralling construction costs would help people get onto the housing ladder, John Prescott said. Since 2003 the number of first time buyers has fallen by 27%.
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