Thursday, Nov 05, 2009

High house prices help screw over first time buyers

Daily Express: FIRST-TIME BUYERS HELP TO BOOST HOUSE PRICES

FIRST-TIME buyers are flocking back to the property market, boosting prices and sales, it emerged yesterday.
More than a year after they ­virtually disappeared – accelerating a slump in values and transactions – they have been tempted back by record low interest rates and falling costs of moving. News that first-time buyers are re-entering the market is a sure sign of ­market recovery and reflects the pent-up demand from people waiting for the right time to take that first step on to the property ladder.
With property prices no longer falling, many have decided to buy their first home before they rise again. And with official interest rates at just 0.5%, money does not earn much in the average savings account, so investing in bricks and mortar looks like a better bet once again.

Posted by little professor @ 01:59 AM (1517 views)
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12 Comments

1. fubar said...

Reading "Crash" by J.G. Ballard whence I came across the phrase "A photograph of a bifuricated pen1s with an inset of a handbrake unit." One hopes the editor of the mail has his pen1s bifuricated by a handbrake unit soon for printing this pish.

Thursday, November 5, 2009 06:04AM Report Comment
 

2. Redprince said...

I too am fed up with irresponsible ill thought out cheap headlines like this.Huge public sector cuts,rising unemployment and further bank bailouts to come and they write this bilge.House purchase transactions are running at 1/4 of normal volumes-so no recovery there.
Another 15-20% down from peak to come.The "experts" didn`t tell you in 2006-07 this was coming but common sense did.

Thursday, November 5, 2009 06:44AM Report Comment
 

3. Auntjess said...

Nice try by the Mail, to make much ado about little, to give the static market a nudge. Hoping - I suspect - that the need to conform will overtake other FTBs.

'Buyer beware!' has never been more apt than now.

Thursday, November 5, 2009 07:16AM Report Comment
 

4. phdinbubbles said...

LOL

Thursday, November 5, 2009 07:38AM Report Comment
 

5. happy mondays said...

Note the word FLOCKING !

Thursday, November 5, 2009 08:15AM Report Comment
 

6. mark wadsworth said...

Glorious. I'm still waiting for the Home-Owner-Ists to call for the government to "help" FTB's onto the ladder by giving them a grant of £10,000 when they buy, that'd only cost the taxpayer £3 billion a year (300,000 FTBs @ £10,000 each) and boost house prices by £10,000 (subsidies always accrue to the least elastic factor, in this case houses coming onto the market). So the boost to the value of homes of the UK's "hard working families" would go up by £200 billion (20m homes @ £10,000).

Yippee! Money for nothing! The voters will love it! A triumph of one-sided economics!

Then a year or two later they make it £20,000 and so on until it all pops again.

Thursday, November 5, 2009 10:12AM Report Comment
 

7. inbreda said...

Mr Wadsworth - don't mock - we already have that situation where I live. The government gives loans to first time buyers to help them buy a house. If you think England is bad for enslaving the population with high house prices you should come and see the situation in the channel islands.

Thursday, November 5, 2009 10:37AM Report Comment
 

8. ontheotherhand said...

The amazing thing here is, how did the Express get this 'story'? Google it and I find it on http://www.uppingsticks.com/latest-property-news/ where they call it a straw poll of Winkworth agents. Straw poll more accurate or the Express version 'industry estimates'? Uppingsticks says the source is a blog called property talk.

So the Express didn't just lazily trot out a press release from a VI, they have a reporter trawling property blogs looking for something positive.

Thursday, November 5, 2009 11:05AM Report Comment
 

9. timmy t said...

For impartial expert advice on house prices, it's always good to get a number of opinions. I'd say going to a chain of estate agents a property website and a removals company shows just how competent a journalist this numpty really is.

Thursday, November 5, 2009 11:45AM Report Comment
 

10. Markw said...

Why is it that none of these surveys actual asks the 'average' first time buyers view - Because at the age of 33 with a salary of £30,000 and savings of £35,000 (with a wife also working part time) in my area I am still way priced out of the market! I am keen to purchase a property in the near future, but with all the government intervention I fear that prices will never drop to within a comfortable price range that past generations have benefited from i.e. a repayment mortgage over 25 yrs with a sensible monthly repayment, allowing me and my family to live a little as well.

Thursday, November 5, 2009 12:40PM Report Comment
 

11. the number cruncher said...

I am sure commissioning editors at the mail are under instruction to put in at least one property ramping articular a day in their tawdry excuse for a paper. I wish we had some journos on this site who could spill the beans on editorial policy

Thursday, November 5, 2009 01:24PM Report Comment
 

12. fubar said...

I misspelled bifurcated. Twice.

Thursday, November 5, 2009 09:01PM Report Comment
 

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