Saturday, Jan 16, 2010
What next for first-timers?
Thisismoney: House price rises hit first-time buyers hard
A remarkable rebound for house prices in 2009 was particularly bad news for first-time buyers, despite claims property is getting more affordable. House prices are rising much faster for first-time buyers than those moving home. Official statistics for November 2009 show that first-time buyers were forced to pay 3.9% more for their house than a year previously.
Posted by jack c @ 11:02 AM (1287 views) Add Comment
5 Comments
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1. holyroller said...
"first-time buyers were forced to pay 3.9% more for their house"
Yes they went into the estate agent and were held at gun point and forced to exchange contracts at 3.9% more than they wanted to pay.
There is a simple solution to rising house prices for first time buyers, just simply don't buy.
2. paul said...
@holyroller
There is a simple solution to rising house prices for first time buyers, just simply don't buy.
That's exactly what's already happening, only when collating house price MoM figures, neither Nationwide or Halifax include:
1. Repossessed house sales - their reasoning is that these are not sold 'at fair value'!!
2. How many sales the figures are based on - there is no minimum transaction quantity so if one house sells for 2% more than last year, that's the published figure for ALL houses. If they were statisticians they'd be laughed out of town.
3. nomad said...
FTB to buy a house at £150,000 - 2 people on average salaries of £25,000 - so 3x + 1.5x - so loan of £112,500.
Therefore 25% deposit of £37,500 required - monthly repayments at 5.75% equalling £708 pm.
The country must be running out of people who can do that.
4. holyroller said...
@paul.
So its all a bit pointless then, if they can cherry pick the houses they include in the stats its worth about as much as the inflation figures based on an unrealistic shopping basket.
5. paul said...
@holyroller
The problem is, the media and public take both CPI inflation figures and lenders' house price inflation figures to be a realistic and accurate reflection of our economy and housing market.
Don't subscribe to that view? That makes you a nutter in their eyes m'afraid.