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Realistbear

C M L: F T Buyer "slump" N S S

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http://uk.biz.yahoo.com/14082007/323/uk-fi...p-june-cml.html

UK first time property buyer numbers slump in June - CML
LONDON (Thomson Financial) - First time property buyers in the UK are becoming a scarce commodity, according to the Council of Mortgage Lenders.
The number of loans to first-time buyers declined to 35,600 in June - somewhat lower than the 39,800 loans in the same month last year. The latest figure is the lowest for any June since 2004 but higher than the 34,600 recorded in May.
The
number of loans to home movers also declined in June
, to 66,300 from 71,100 in the same month last year.
CML said the survey also revealed that the five interest rises since August 2006 are continuing to affect the market, with affordability measures edging upwards. A first-time buyer now needs 3.37 times of his/her annual income to get on the property ladder, up slightly from 3.36 times in May, and 3.22 times in June last year.

RICS reported today with a build-up of inventory--highest since January and the lowest buyer interest since 2004. Something has changed and it isn't looking good for Gordon's HPI-BTL-MEW miracle! :D

http://uk.biz.yahoo.com/housingmarket/index.html

Housing Activity Continues To Weaken - Business Plus - Tue 14 Aug, 12:30 PM
Indicators continue to point to a significant downturn in construction activity. According to AIB, the latest data show house guarantee registrations down 35% yoy for the first seven months of 2007.

New builds not doing so good either and there is supposed to be a property shortage? :blink:

http://uk.biz.yahoo.com/14082007/140/signs...ing-market.html

Signs Of A Slowdown In The Housing Market
The number of people looking to buy a new home fell at its fastest rate for three years during July, new figures have shown. It has led to speculation that the market may have peaked.
Edited by Realistbear

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http://uk.biz.yahoo.com/14082007/323/uk-fi...p-june-cml.html

A first-time buyer now needs 3.37 times of his/her annual income to get on the property ladder, up slightly from 3.36 times in May, and 3.22 times in June last year.

The proportion of income first-time buyers use to pay mortgage interest also increased, to 19.3 in June from 19.1 in May. The latest figure is the highest ever and well up from 16.5 pct in June last year.

How do they calculate "a first time buyer" ?

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http://uk.biz.yahoo.com/14082007/323/uk-fi...p-june-cml.html

How do they calculate "a first time buyer" ?

Not sure but an article in the Times quoted the average mutliple now stands at 9.3:1 (as it applies to average income to average house price). The multiples referred to by the CML must exist in their minds as some kind of perfect ideal in a market that did not engage in irresponsible lending practices. Of course, we know that not to be the case. Perhaps the CML are trying to signal the markets that the UK has nothing to worry about as debt levels are much lower than historical averages and comfortably below 4:1?

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