Wednesday, Mar 26, 2008

Bellway becomes decidedly cautious in its outlook.

Citywire: Bellway predicts even tougher times for first time house buyers

First time buyers are going to find it even harder to get on to the property ladder in the growing liquidity crisis warns housebuilder Bellway.
Banks and building societies demands for larger deposits and changes to lending criteria means the housing ladder is being pulled out of the grasp of first time buyers, Bellway said in its interim results.

Posted by jack c @ 10:47 AM (380 views) Add Comment

4 Comments

1. mark wadsworth said...

It's the wrong analogy. What happens is that the vertical bits underneath the bottom rung are being sawn off, so the whole ladder will drop down so that the first rung is within reach again.

Wednesday, March 26, 2008 12:39PM Report Comment
 

2. C'mon Correction said...

Bellway are looking at it completely wrong.

If credit is tightening then people can't borrow as much, thus everyone can't offer as much money as they could for a house as they've been able to do over the last few years - hence prices will drop - period.

So people will be able to buy a house for a lesser borrowed amount; so it will get more and more affordable for first time buyers NOT less.

VI spin is getting really shrill to the point where logic has completely gone out of the window. They are looking and sounding ever more desperate.

Wednesday, March 26, 2008 12:48PM Report Comment
 

3. paul said...

We see yet another VI using first time buyers' plight as a flag of convenience to call on the public to get behind interest rate cuts, stamp duty cuts, IHT cuts, scrapping HIPS etc etc.

The current crisis has NOTHING to do with first time buyers - the lack of availablity of cheap mortgages is GOOD for first time buyers.

Wednesday, March 26, 2008 01:36PM Report Comment
 

4. Fed Up said...

The Times has run exactly the same story today:

http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article3624524.ece

Wednesday, March 26, 2008 06:57PM Report Comment
 

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