Property News > House prices may be rising but can buyers afford to buy?

House prices may be rising but can buyers afford to buy?

This month the Halifax reported they had seen a year on year rise of 2.6% in house prices. Excellent news you might think but their housing economist Martin Ellis comments,
"Despite these signs of improvement in the housing market, the subdued economic background and the accompanying weak income growth continue to be a significant constraint on housing demand and activity."
So, even though prices have risen since this time last year, it does not mean a quick house sale is going to be easier. In fact, it could mean the opposite. 

'Generation Rent' is just one of the factors making a fast house sale harder, particularly for a smaller property. A survey conducted by the Halifax indicates that would-be first-time buyers with families are being priced out of the housing market and could face a wait of more than a decade before they can get on the property ladder. This period rises to a wait of 14 years for single people. The survey indicates that two-thirds of would-be first-time buyers are unlikely to buy a home in the next five years and lack any long-term savings plans. Key findings of the survey include:
  • 31% of 20-45 year old non-homeowners are only prepared to save for three years to build up the deposit on their first home. As first-time buyers typically need a deposit of £27,000 they would have to save a daunting £750 per month if spread over just three years.
  • 59% of those described by the Halifax as "Generation Rent" have no spare cash to save, no interest in saving or are trying to save, but failing.
  • 21% have already given up on the prospect of owning a property. This figure rises to 43% among 40-45 year olds.
  • 29% have no plans to get on the property ladder. Only 16% have a realistic plan to buy a home in the next three to five years.
  • A quarter of non-homeowners surveyed believe property is too expensive in their area. This rises to 34% for those in London and the South East.
The survey indicates a shift away from the current attitude to house ownership as a priority with renting becoming the norm for an entire generation of would-be first-time buyers. Those faced with selling the 'ideal' first time buy quickly, especially in London and the South East, are therefore facing a depleted market. 

If you are struggling to sell a house, whether or not it is suitable for first time buyers, selling via traditional routes may not be the best option for a quick sale. Selling to Property Rescue is fast and hassle free. They will make an offer for your home, which, if you accept, will be formalised and concluded within a few days. They will complete the necessary paperwork for you and there will be no hidden fees for you to pay once the sale is complete. 

Contact Property Rescue to see how much your home is worth. There is no obligation to proceed, but a super fast sale could clear your loan and enable you to start planning for a debt-free retirement.

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