Housing accessibility worsens says National Homebuyers
First-time buyers (FTBs) are finding it increasingly difficult to make it onto the property ladder, causing problems for anyone seeking a fast property sale.
[UKPRwire, Tue Feb 12 2008] The Royal Institution of Chartered Surveyors (Rics) has published a report, revealing that accessibility to the housing market is 351 per cent harder today than it was in 1996.
According to the report, an FTB couple now needs to save over £27,000 in order to take that first step, translating to 104 per cent of their take-home salary.
It means that fewer buyers are entering the market and is likely to lead to a surge in people seeking a fast property sale.
The rising cost of deposits, stamp duty and fees are being blamed for decreasing accessibility.
"At the start of 2008, first time buyers are finding it even harder to get a foothold on the housing ladder and the signs are that conditions are unlikely to get better in the short term," said David Stubbs, senior economist at Rics.
"Mortgage lenders are demanding ever higher deposits as the credit crunch continues to take effect.
"Those who are struggling with mortgage repayments are still faced with paying a large percentage of take home pay but there may be some release of pressure as earnings continue to rise," he added.
Julian King of National Hoembuyers says, "The lack of buyers will cause continued problems for homesellers in 2008.
"Traditionally FTBs account for 45-50 per cent of all property transactions. Currently this is more like 20 per cent.
"As the length of time it takes to sell a property on the open market, due to the lack of available buyers, reaches ten weeks, homeowners will find this an unacceptable period of time".
Mr King is a director of National Homebuyers, the UK's leading quick home sale firm, guaranteeing a fast property sale for vendors who need a quick sale. The company is also the UK leaders in providing mortgage rescue schemes like 'Sell and Rent Back'.