Saturday, Oct 13, 2007
No wonder the propaganda campaign is targeting BTL
Firstrung: First time buyers drop by twenty percent over past six months
Moneysupermarket.com has revealed that first-time buyers (FTBs) are disappearing at an alarming rate. According to the firm's 'Mortgage Map' the number of first time buyers has dropped by one fifth over a period of just six months ... "First-time buyers are the lifeblood of the housing market and provide essential liquidity, so the fact this segment is getting smaller is worrying for the economy as a whole."
Posted by uncle chris @ 10:43 AM (549 views) Add Comment
4 Comments
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1. new_order said...
I have been ocassionally browsing properties on rightmove for the past 8 months. The same ones are shown at the same prices. It is like the market is in stasis.
2. converted lurker said...
Yes there is a concerted effort to ensare more BTLs, however, they won't get LTVs above 85% and the best rates are approx 7% (700 quid rent needed for every 100K borrowed!) and unless you have a lily white credit record you'll have to have 75% LTV, in short, it's fukced. As for FTBs most havn't had a choice as the market raced ahead. They will now be entering a period where they do have a choice and need to exercise caution.
3. new_order said...
"They will now be entering a period where they do have a choice and need to exercise caution"
Assuming the average wage in the UK is £30,000 (optimistic and synical) and average house price is £140,000 (low estimate) how can you buy one?
4. Maihem said...
@new_order get a girl/boyfriend quick :)
And don't pay attention to rightmove listing properties for an extended time. They don't update their database when deeds/leases/shortholds go off the market. You need to look for a change.
For me, the most interesting change is that something happened in London 2/3 years ago that sent house prices sky high and dragged the rest of the UK up with the north least affected - just as the market looked like it was turning. I don't know what effect that is, but the north seems to have peaked a year later than it would have done, yet has nonetheless peaked. I wonder if this was due to those sub-prime London properties that panorama was talking about - people drumming demand up by tricking people who weren't otherwise in the market so they could get rid of their stock.