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Independent: Getting On The Ladder Is Hard, But The Next Rung Can Be As Steep.

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'Getting on the ladder is hard, but the next rung can be as steep':

http://money.independent.co.uk/property/mo...ticle422957.ece

Not all first-timers are buyers.

For those already on the ladder and looking to trade up, life can be just as tough as a first-time seller, according to new research from mortgage provider First Active .

Among people in this category, more than four in five suffer soaring mortgage repayments when they reach the next rung -- with a third having to spend an additional £200 each month.

And that's before fees and higher taxes, warns Melanie Bien of broker Savills Private Finance. "Trading up for the first time can be an expensive business."

[...snip...]

The National Association of Estate Agents (NAEA) warns that struggling first-time sellers will also be the ones who suffer most from the introduction next June of Home Information Packs (HIP), under which vendors pay for all the survey information.

In an NAEA survey, three-quarters of first-time sellers reported that the estimated costs of compiling HIPs -- between £600 and £1,000 -- would discourage them from putting their homes on the market. This is because the HIP fee will have to be paid whether the property is sold or not.

"Costs like these mean many may find the next step up the ladder too much of a stretch," says NAEA's chief executive, Peter Bolton King. "This will affect the rest of the housing market, slowing it right down and causing frustration for first- time buyers and those further up the ladder alike."

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'Getting on the ladder is hard, but the next rung can be as steep':

http://money.independent.co.uk/property/mo...ticle422957.ece

I do wish the mainstream press would try to keep up. These are all things that have been discussed on this board for some time. Though I note that they don't explicitly say what will happen to buyer demand for second rung properties if first time sellers decide not to sell and "move up". Apart from a generic "slowing" of the market.

Billy Shears

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Guest Cletus VanDamme

I do wish the mainstream press would try to keep up. These are all things that have been discussed on this board for some time. Though I note that they don't explicitly say what will happen to buyer demand for second rung properties if first time sellers decide not to sell and "move up". Apart from a generic "slowing" of the market.

Billy Shears

Agreed. We've been talking about this for years. HPI benefits no-one except those trading down and/or emigrating.

I got bored of explaining this when we 'traded up' (well, more like traded sideways) a couple of years ago. Family, friends and acquaintances said, 'ooh, I bet you made a good profit when you sold your place'. I said, no, actually it's costing us more. People seem to think it's only their own houses that go up in value, everyone else's stays the same!

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'Getting on the ladder is hard, but the next rung can be as steep':

http://money.independent.co.uk/property/mo...ticle422957.ece

I love it, "having to pay £200 extra each month". Surely that would be choosing to move to a bigger house/better area and choosing to pay £200 extra for that house!

This is why I'd quite like a house price correction - my next rung would cost me about £350 pcm including council tax.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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