First time buyer numbers may be exaggerated

17-Jan-2012

The decline in first time buyers may have been exaggerated, according to the Council of Mortgage Lenders (CML), which has suggested that falling house prices could offset the high deposits required by banks.

House prices in Britain have declined in all areas apart from London, according to house price index figures from the Department for Communities and Local Government (DCLG). The average house price in Britain is now £205,796, which is far lower than the peak in 2011 of £208,446 in August.

Estate agents expect house prices to fall further in 2012, with many first time buyers keeping a close eye on house price fluctuations in order to judge the right time to buy. However, stamp duty tax is due to be re-introduced in March, and deposits are still high, which are acting as serious deterrents for first time acquisitions.

Paul Smee, director general of the CML, remained optimistic over the outlook for first time buyers, stating: “While the number of first-time buyers, and indeed all buyers, has declined markedly since the credit crunch, the proportion of loans advanced to first time buyers has remained remarkably steady, fluctuating between 34 per cent and 40 per cent of the total since 2005. In November, first-time buyers took up 37 per cent of the house purchase market, the same as in October.”

A UK first time buyer will need to research all about how to buy a house including mortgages and legal advice

Published by Joshua Scott

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