Baby boomer buying 'causes problems for FTBs'

21-Aug-2008

First-time buyers (FTBs) are being put under additional pressure as the older generation buy properties with cash, an expert suggests.

Andy Smith, managing director of 1st Property Investment, warns that as baby boomers are beginning to buy seafront property, FTBs are being denied the same opportunities.

With older people often buying properties with cash due to not having a mortgage, Mr Smith speculates that older people "think that the interest rates are fabulous. It means they earn more income at that stage but for first-time buyers it's a hell of a market to try and get into".

Seafront locations are becoming popular among the older generation as they offer better lifestyle choices, he adds.

Not having to rely on mortgages means that baby boomers have the freedom to live wherever they choose because they want to and not due to economic pressures, the expert continues.

The Halifax Estate Agents Seaside Town Review reported that 18 seaside towns experienced average house growth of at least 100 per cent between 2002 and 2007.


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