Posts with tag: getting on the property ladder

65% of First Time Buyers Must Wait to get on Property Ladder

Published On: May 18, 2015 at 12:50 pm

Tags: buying a house,first time buyers,getting on the property ladder

Clydesdale and Yorkshire Banks have conducted research that found most first time buyers have to wait longer than planned to get onto the property ladder.

65% of First Time Buyers Must Wait to get on Property Ladder

The Annual First Time Buyers (FTB) Survey revealed that nearly two thirds, 65%, had to wait longer than expected to move into their first home, with just 8% becoming homeowners earlier than planned.

However, these figures indicate a slight improvement on the previous year, when 68% could not get on the property ladder quickly. The largest proportion (17%) of those who have to wait are delayed between one and two years.

The struggle to break into the housing market means that most new homeowners stay in their first house for a while. The greatest proportion (21%) plan to stay in their first property for between four and five years. 19% do not plan to move for nine to ten years.

In the Midlands and North East, the highest percentage plan to stay for between nine and ten years, in contrast to those in London, the South West and Wales, who hope to stay for between three and four years.

Director of Retail Banking, Steve Fletcher, says: “Clydesdale and Yorkshire Banks have extensive experience of helping first time buyers get onto the property ladder and we know how difficult it can be to buy your first home.

“It is positive that our research shows that there is a small improvement on the previous year, however, almost two thirds of first time buyers still face challenges in meeting their own timescales for being a homeowner.

“We remain focused on supporting first time buyers and helping to make their dream of owning a home a reality. Whether it is saving a deposit or finding the right mortgage to suit individual needs and circumstances, Clydesdale and Yorkshire Banks can help throughout the process of becoming a homeowner for the first time.”¹

¹http://www.propertyreporter.co.uk/property/65-of-ftbs-are-waiting-longer-than-expected-to-get-on-the-ladder.html

Top Ten Sacrifices of Aspiring Homeowners

Published On: March 6, 2015 at 2:12 pm

Author: Em Morley

Categories: Landlord News

Tags: getting on the property ladder,sacrifices of aspiring homeowners,saving for a deposit

Although the Help to Buy scheme has been fairly successful, owning a home is still far out of reach for many 18-34 year olds.

One of the hardest things to conquer is raising the substantial deposits required for purchasing a property. What House? has revealed some of the most common steps taken by aspiring buyers to save the thousands of pounds that they need to get onto the housing ladder.

Top Ten Sacrifices of Aspiring Homeowners

The Top Ten Sacrifices of Prospective Homeowners¹

Cutting down on socialising and meeting friends – 47%

Going without a holiday – 44%

Not eating out – 42%

Taking on another job or extra shifts – 34%

Cutting back on essentials – 29%

Giving up expensive hobbies – 21%

Walking instead of using the car or public transport – 21%

Moving back in with parents – 19%

Selling possessions – 14%

Putting a wedding on hold – 7%

¹http://www.whathouse.com/news/article/54ec80684031b93e49ec2d18/What+are+the+top+10+sacrifices+prospective+homeowners+make+to+save+a+deposit%253F

Amount of Under-35s with Own Property has Halved in 20 Years

Published On: January 23, 2015 at 11:11 am

Author: Em Morley

Categories: Property News

Tags: getting on the property ladder,struggling first time buyers,young first time buyers

Students experience problems with landlords

The amount of homeowners under 35-years-old has fallen significantly in the last two decades, as first time buyers cannot get onto the property ladder.

Research from the Office for National Statistics (ONS) indicates that homeownership has around halved for young people and only risen for pensioners. In 1991, one in three 16-24-year-olds owned their own home. By 2011, this figure had dropped to only one in ten.¹

The number of 25-34-year-old homeowners has also decreased massively, from two-thirds to less than half.¹

Even older age groups cannot save for deposits or get mortgages, says the ONS. Between 1991-2011, the amount of homeowners aged 35-44 dropped from three-quarters to two-thirds. There was also a small decline for those aged 45-64.¹

However, homeownership rose for over-65s during the same timeframe, increasing from just over half to around three-quarters.¹

The ONS believes that a contributing factor behind the amount of young buyers is the increase in deposit values needed for a mortgage. This is due to rising house prices and stricter lending criteria, which have made it more difficult to gain a loan with a small deposit.

Amount of Under-35s with Own Property has Halved in 20 Years

Additionally, house building has been decreasing since 1980, especially since the recession. Therefore, the housing stock has been pressured, and prices have grown.

The ONS’s report states: “House prices have been increasing and first time buyers are finding it more difficult to get on the property ladder, while homeownership among younger age groups generally has declined.”¹

Although it has been hard for young buyers, prospects seem to be improving. Separate findings reveal that over 300,000 people entered the housing market last year.¹

The study, by Halifax, says that in 2014, the highest number of first time buyers stepped onto the property ladder since 2007.¹

The Council of Mortgage Lenders (CML) also found that around £205.6 billion worth of mortgages were approved last year, to all types of borrowers. This is the highest level since 2008.¹

The total value of mortgages granted in 2014 was 17% higher than in 2013, when £176 billion worth of loans were provided.¹

Economist at the CML, Bob Pannell, says that the number of first time buyers is a “key driver” of the market recovery last year. He says that it is still a “far cry from the half million that we might regard as normal”, but it is heading in the right direction.¹

¹http://www.dailymail.co.uk/news/article-2922745/Home-ownership-collapses-people-35-Number-property-halved-past-two-decades.html