Who Wants A First Time Buyer in UK Housing Market

Tue, 31 Aug 2010

Who wants to be a first time buyer in the UK presently? Other than those who are wealthy enough to have approximately £32,000 or more in cash, most other people have given up on trying to get onto the property ladder.

They are attemtping to make a life for themselves via private rented accommodation.

Amidst the boom, first time buyers were able to purchase a 100 per cent mortgage .

However, as prices increased the disposable income first time buyers were left with dwindled, and many faced mortgage arrears .

Now fewer people were able to afford to buy, with the financial crisis acting as a trigger for an inevitable house price crash.

As the recession got bigger, the government anticipated a surge of repossessions like those experienced in the 80s which would send the UK economy into a whirlwind.

The waves of repossessions ensured housing supply was up whilst prices were heading downwards.

Thus, by keeping repossessions at bay, the government caused supply to reduce and prices to stabilise rapidly.

This was welcome news for the economy as well as good news for struggling homeowners, but awful news for first time buyers.

Prices stabilised and began increasing again a long time before they became affordable for your average first time buyers.

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