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zugzwang

Number Of First Time Buyers Overtakes August 2007

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40% increase yoy seems extraordinary?! Can this be corroborated?

http://www.mortgagei...rtakes_2007.htm

Number of first-time buyers overtakes 2007

The number of first-time buyers in August 2013 outpaced those recorded in August 2007, data from Connells Survey & Valuation has shown.

Ryan Fowler, 5 September, 2013

In total there were 40% more first-time buyers last month than in August 2012 and 1% more than August 2007.

The 2013 data bucked the trend of a typical slowdown in housing activity in August. Over the previous five years there has been an average of 4% fewer new buyer valuations in August than July.

But this August, by contrast, there were 4% more first-time buyer valuations than in July.

Total numbers of all residential valuations conducted in August have grown almost as strongly, up 39% in the last twelve months. Compared to July, August also saw more total activity, with a 1% monthly increase.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: "The UK housing market went into hibernation five years ago, and we've had to wait a long time and work through considerable developments to see some significant positive trends emerging since.

"Helped by the Funding for Lending Scheme and Help to Buy, thousands of new buyers are overcoming huge obstacles from wage freezes, inflation and lower saving rates, turning long pent-up dreams to buy into reality."

..

Bagshaw continued: "If economic growth continues at the current pace, the benefit will be felt far beyond the newspaper stands.

"Funding for Lending has been important, with mortgage rates up to a full 1% lower than they might have been. But as lenders move towards the final quarter of 2013, the focus is now shifting to Help to Buy and the impact this will have on the broader property market.

Edited by zugzwang

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"Helped by the Funding for Lending Scheme and Help to Buy, thousands of new buyers are overcoming huge obstacles from wage freezes, inflation and lower saving rates, turning long pent-up dreams to buy into reality."

Mugs who are pushing themselves to the front of the buying queue with their willingness to take massive risk, embrace extra debt schemes, and deny more prudent saver/buyers their dreams of owning. Someone else can throw themselves under the bus for these 'victims'.

'Economic growth' ok. Where yesterday the IMF says the future will be the US driving global growth, emerging countries at risk of slowing due to US tightening monetary policy, calls for surplus countries like Germany and China to stoke domestic demand, and says deficit countries like Britain needs to improve its external competitiveness.

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Everyone said the buyers in London were mugs in 2007 and prices in many areas prices (in some cases by 10,20 or 30% ) are above 2007 levels. The government seem to set the agenda and are achieving what they set out to achieve. The economic fundamentals are it seems irrelevant in the new economy.

They are still mugs, but yes, older owners have had an even bigger reward from the authorities wanting house prices high and higher, and 2007 buyers can still glow with their cleverness, compared to our greater uncertainty and our continued big price-out at such actions by the authorities.

Can only be sustained by what this month or next months buyers are willing to pay for their homes. And improving external competitiveness sounds like it will require much adjusting. Perhaps forced on to us if we refuse to do it ourselves. Can't see how you improve competitiveness by making house prices more expensive. Cheaper house prices would encourage a lot more lending, and we need to get some debt on all those houses owned outright to help our banks, but at much lower purchase prices, with mortgage lending rates normalised.

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outside of london, house prices or value should i say has started to become competitive.

since 2007 prices outside of london have been fairly stagnant, and when you factor in 6 years of inflation at just over 3% youre looking at 20% falls in real house prices.

in some regions prices have certainly fallen nominally as well since 2007 so you are seeing up to 30%-40% drops from the peak in real terms outside london.

Edited by mfp123

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I'm enjoying watching the VI minnows get excited about Osborne's London/SE property bounce. They really do think we're about to have a rerun of 1997-2007, only this time we'll have to do it with banks on taxpayer life support, no room for interest rate cuts, flat nominal/falling real wages, and a population already up to its eyeballs in debt. Squee on my little friends.

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outside of london, house prices or value should i say has started to become competitive.

since 2007 prices outside of london have been fairly stagnant, and when you factor in 6 years of inflation at just over 3% youre looking at 20% falls in real house prices.

in some regions prices have certainly fallen nominally as well since 2007 so you are seeing up to 30%-40% drops from the peak in real terms outside london.

Exactly. Personally i couldn't give a ****** about London house prices. I never plan to buy one.

The 'London is booming so everything is just ticketyboo' mantra really is desperate.

Its what's known in the supermarket trade as a 'lost leader'

Meant to entice people in. If they fall for it.

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Taken up to six years to save a 5% deposit......that's with the lowest debit interest rates in history. ;)

it depends where you are. you can easily buy 2 bed terraced or 3 bed semi detached properties outside london from £70-£130,000.

if you cant save £1000-2000 a year over 6 years for a deposit you shouldnt really be buying a house

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The article title refers to number of first time buyers but from what i can see in the quote only contains percentages .

Edit- I dont remember 2007 being great for ftb's

Edited by Ash4781

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it depends where you are. you can easily buy 2 bed terraced or 3 bed semi detached properties outside london from £70-£130,000.

if you cant save £1000-2000 a year over 6 years for a deposit you shouldnt really be buying a house

That is why there are more first time buyers today HTB.....it has taken that long to save a deposit, historically sustainable deposits were 10% at best......max four times sole income for average earners or two and a half times joint incomes.....10% of £130k is not £1or £2k........more debt required to pay higher prices must be good.....only other choice is stay living with parents in HMO or paying rent........your choice if you have one......still forget the amount of debt, debt is only fictitious zeros, it is the never ending, future amount unknown, monthly payments that count......still, nice pad will be looking at the same four walls for a number of years yet.....better get used to it. ;)

Edited by winkie

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That's first time buyer 'valuations'. What's that supposed to mean, has anybody bought a house? :rolleyes:

You could also take it to mean that 40% of estate agents have gone bust! :lol:

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Obviously there is a "backlog" of people who didn't buy in the last few years, because of the economic situation! :huh:

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Are FTBs actually liar loan BTL ers ready to cash in on the bubble recovery ?

Good luck to them. :lol:

:huh::blink::unsure:

".............. LIAR LOANS"?????

NAH!!....! :P

Edited by eric pebble

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