Monday, Jun 19, 2006
Market buoyed by new type of First Time Buyer according to the Nationwide
BBC: 'Returners' boost housing market
Nationwide have decided to class buyers returning to the market as First Time Buyers (FTB). Fionnuala Earley, defied those that said a turd can't be polished by saying, "No longer can we think of first-time buyers as the fresh-faced young person or couple,....Rather the category includes a significant proportion of buyers returning to the market...such buyers often have access to deposits funded from past increases in house prices"
Err, don't want to state the obvious Ms Earley but buyers returning to the market are not FTB unless of course you want to redefine the English language. Now the key words from Ms Earley are, "such buyers often have access to deposits funded from past increases in house prices". So they're not FTB then Ms Earley, doh.....
This little article smacks of desperation in its finest form.
10 Comments
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1. uncle tom said...
I've suspected for some time that the defintion of first time buyer was actually 'person taking out mortgage who isn't cashing one in at the same time'
If you look at the birth rate stats and balance them against FTB figures, you can see that there used to be far too many of them, even after allowing for right to buy sales.
2. Sebastian said...
I thought the key word was "First"... :S
3. Dominic said...
Surely the number of divorcees returning now must be the same as they were 10 years ago, or has there been a suden and dramatic rise in divorce over the last 10 years? Perhaps another way of viewing the data, is that the number of genuine first time buyers have dropped so much that this other catagory "returners" are now becoming a significant proportion of thoes taking out mortgage without cashing one in at the same time.
4. uncle chris said...
Hmmm - does that make me a first time buyer even though I've owned 6 houses over the years. Decided to get out last year and am currently sitting tight in rented, waiting for the proper fun to start. I do worry that the hoards of migrants from East Europe will keep prices inflated for a while to come. By the way, does anyone know why we are the only ones letting in 100,000s of migrants, when (i) we are one of the most densely populated countries in the world and (ii) the majority of Europe has chosen to protect its borders and keeps its homes for its own citizens. I hear there will be another 200-500,000 Bulgarians ans Romanians coming next year. Why oh why are we the soft touch of Europe.
5. denzil said...
Men from Uncle.
I spoke to a lender last week and he confirmed that I would be classed as an FTB because I currently live in rented regardless of the fact that I have owned 5 properties.
The lenders are just masking the fact that the FTB is essentially extinct.
6. bidin'matime said...
So this (when it comes..) will be the third time I've been an FTB! (Except of course that I probabaly wont take out a mortgage - so what does that make me?? - maybe the news headlines will be full of "Times are so good that first time buyers no longer need mortages!")
7. European-bear said...
Uncle Chris. UK is not the "soft touch". Countries like Switzerland and Austria (who are closer to the front line so to say!!!!) have much higher proportions of immigrants in their populations (and indeed refugees) than the UK. I also do not believe that these "hords" of immigrants neccesarily inflate the prices as they are poor (ever been to the east ... it is shit poor) and they mostly come to do minimal wage jobs (which is well paid by their standards), but would not raise the loan for a mortgage on the worse house in the worse town in the UK. They will have some effect on the BTL market in that slum landlords could pack them into their properties at 4 to a room (which is all they could afford). Switzerland is 60% mountains, and 40% as heavily populated as the South East of England (Switzerland is the size of Wales, but not much is habitable, and has a popualtion of over 7 million). However, property remains good value (and extremely good quality) despite the much larger immigrant population and the same population pressures. HPI is firmly the fault of failed UK housing policies and unscupilous banking sector who chase the price up by ever growing multiples of income, not to mention the crass planning system.....and speculators....
8. Miniftse said...
UC your comments almost strike me as racist. Were did we come from in the first place? My grand parents are Irish, Im English and live in Scotland. In the past IIve also worked and lived in the USA and the Netherlands. Immigration should be welcomed, it benefits our economy and society. It certainly isnt responsible for inflating house prices, and in the grand scale of things the numbers are very small.
9. uncle chris said...
European Bear. I think we'll have to disagree on this point with regards the UK. I live in Wrexham where the riots happened a few years back, and despite what the politicians say, those were a direct result of council housing being allocated to new immigrants ahead of local families who had been on the waiting list for years - you'll be glad to know I wasn't involved :-) but did see the immediate aftermath in the local hospital. I read somewhere that estimates suggest between 250,000 and 700,000 east europeans have arrived since - and this has led to Polish and Portugese communities taking over certain parts of our town and friction is on the increase. That has to have had an affect on house prices - you would have a hard job convincing people in my area otherwise when the average wage is around £14,000 and the average house price around £140,000. Yes, the banks and government can take some of the blame but the fundamental problem is that too many people are chasing too many houses, and with a declining indigenous population, this should not be a problem.
10. Acornish11 said...
100% AGREE WITH THE PERSON IN WREXHAM, PEOPLE NEED TO WAKE UP AS TO WHAT IS GOING ON