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20/04/2009
First Time Buyers 'Still Locked Out'
Tightening of lending means that first time buyers are still locked out of home ownership despite the fall in house prices, new research by Shelter's ROOF magazine has shown.
Figures from the annual ROOF Affordability Index, seen as the most comprehensive yearly data on house affordability, show the average house price for first timers is now £124,699, almost £30,000 lower than last year.
But this improvement in affordability is more than offset by a doubling of the size of the deposit required by lenders.
In September 2007 the average deposit required by lenders was £13,194. However, by January 2009, that figure has more than doubled to £30,632.
The lack of accessible mortgages was not the only factor holding first time buyers back from entering the market. Rising repossessions, unemployment, economic uncertainty, and the expectation that house prices may fall further are all having an impact. As a result, in 2007 the number of first-timer loans was 358,000, but this fell to just 194,000 a year later.
Shelter Chief Executive Adam Sampson said: "These new figures show that the housing market is far from bouncing back. Although house prices are now lower than they have been since 2005, in practice the majority of first time buyers are no closer to being able to buy their first home.
"The fact that most banks and building societies are reluctant to lend to anyone without a massive deposit means there is a generation of young people and young families being locked out of the housing market."
Overall mortgage lending has substantially reduced since the onslaught of the credit crunch with fewer deals available and most lenders demanding much larger deposits. It is only in recent days that HSBC has been the first major lender to offer a more competitive rate for those with a 10% deposit.
(CD/JM)
Figures from the annual ROOF Affordability Index, seen as the most comprehensive yearly data on house affordability, show the average house price for first timers is now £124,699, almost £30,000 lower than last year.
But this improvement in affordability is more than offset by a doubling of the size of the deposit required by lenders.
In September 2007 the average deposit required by lenders was £13,194. However, by January 2009, that figure has more than doubled to £30,632.
The lack of accessible mortgages was not the only factor holding first time buyers back from entering the market. Rising repossessions, unemployment, economic uncertainty, and the expectation that house prices may fall further are all having an impact. As a result, in 2007 the number of first-timer loans was 358,000, but this fell to just 194,000 a year later.
Shelter Chief Executive Adam Sampson said: "These new figures show that the housing market is far from bouncing back. Although house prices are now lower than they have been since 2005, in practice the majority of first time buyers are no closer to being able to buy their first home.
"The fact that most banks and building societies are reluctant to lend to anyone without a massive deposit means there is a generation of young people and young families being locked out of the housing market."
Overall mortgage lending has substantially reduced since the onslaught of the credit crunch with fewer deals available and most lenders demanding much larger deposits. It is only in recent days that HSBC has been the first major lender to offer a more competitive rate for those with a 10% deposit.
(CD/JM)
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13 February 2009
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending. Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home.
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending. Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home.
08 December 2004
UK-wide rise in time taken to save for first house
It takes first time buyers six months longer to save for a house deposit when compared to the first quarter of 2004 and one year nine months longer than in 1994.
UK-wide rise in time taken to save for first house
It takes first time buyers six months longer to save for a house deposit when compared to the first quarter of 2004 and one year nine months longer than in 1994.
17 December 2012
One In Four First-Time Buyers Take Ten Years To Raise Deposit
More than one in four first time buyers say that it will take them ten years or more to raise the necessary deposit to buy a property, say the Building Society Association (BSA) in their 19th edition of Property Tracker, published today.
One In Four First-Time Buyers Take Ten Years To Raise Deposit
More than one in four first time buyers say that it will take them ten years or more to raise the necessary deposit to buy a property, say the Building Society Association (BSA) in their 19th edition of Property Tracker, published today.
08 April 2011
Downbeat Mortgage Lending 'Creeping Up'
Mortgage lending across the UK increased slightly in February after a particularly downbeat January, according to new figures from the Council of Mortgage Lenders (CML). There were 32,300 loans for house purchase, worth £4.6 billion, up 8% by volume and 5% by value from January, but down 12% (by volume and value) from February 2010.
Downbeat Mortgage Lending 'Creeping Up'
Mortgage lending across the UK increased slightly in February after a particularly downbeat January, according to new figures from the Council of Mortgage Lenders (CML). There were 32,300 loans for house purchase, worth £4.6 billion, up 8% by volume and 5% by value from January, but down 12% (by volume and value) from February 2010.
04 March 2013
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
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Northern Ireland WeatherToday:A mostly cloudy start with scattered showers, the showers becoming more isolated and largely confined to the south this morning. Becoming brighter this afternoon, the best of any sunnier spells across northern counties. Northerly winds easing. Maximum temperature 12 °C.Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
