Affordability Remains ‘Major Issue’ For First Time Buyers
Keywords: mortgage, first, time, buyers, struggling
First-time buyers’ views on the property market have changed dramatically over the last 30 years, a new set of figures have intimated.
According to research carried out by GE Money Home Lending, the average age of a buyer taking their first steps on the housing ladder has risen from 27 in 1977 to 34 in the present day. The study also revealed house price inflation has grown by some 1,436 per cent during this stretch of time. As a result, some three-quarters (76 per cent) of consumers surveyed claim that it is currently the worst-ever period for first-time buyers to afford the costs of purchasing their own home. Meanwhile, the typical homeowner is now revealed to be contributing about 25 per cent of their annual income towards making repayments on secured loans.
Gerry Bell, head of mortgage marketing for GE Money Home Lending, said: “The fact that taking the first step on to the property ladder now occurs later in life is due in no small part to economic factors such as house prices. However, our analysis also reveals that today’s potential younger buyers also have vastly different attitudes, aspirations and lifestyles to their counterparts 30 years ago. This refusal to conform to traditional family-oriented motivations and the desire to gain independence and experience, undoubtedly delays the purchase of a first home and contributes to the ongoing affordability issues faced by these consumers.”
Research from the financial services firm also showed a change in the reasons for why consumers are making their initial forays on the property sector. Thirty years ago more than half of first-time buyers claimed that their main reason for purchasing a home was due to their recent marriage. However, this figure has now fallen to 14 per cent. The study showed that the majority of consumers are now looking to buy a property as they want a home that they can call their own.
Meanwhile, a change has been noted in the status of property purchasers. In 1977, the vast majority (80 per cent) of buyers were married couples, something that has now decreased to a third. Findings from GE Money Home Lending also showed that about a quarter of first-time buyers currently purchase a home on their own - almost double the proportion that did in 1977.
In addition, the study revealed that just over half (51 per cent) of all first-time buyers are currently receiving some sort of financial help from either their parents or grandparents in meeting property costs. “Affordability is clearly a major issue and an issue which is here to stay, as house prices continue to create the biggest challenge for future first-time buyers,” Mr Bell added.
Towards the end of last year, a survey conducted by Scottish Widows unveiled a rising difficulty among university graduates in getting on to the property ladder. According to the financial services provider, 56 per cent of consumers completing university are yet to buy their first home - a rise of three per cent from last year’s study. Some 70 per cent of those yet to purchase a house claimed that increasing property and secured loans costs were the main factor in preventing them from doing so.
Steve Smith writes for 1 Stop Finance Shop, a one stop Personal Loans Shop, with information on bad credit loans, and debt consolidation loans available on site. Visit Today: www..1stopfinanceshopuk.biz
Previous Articles Highlighter:
Interior Design Secrets To Sell Your Home Fast (1)
Draw attention to your homes best feature with a decorative portion or activity so that the buyers retain information about your home decor. Your goal to make the buyers think about your home after they have left can be met with such ideas.
Personal Finances - K.I.S.S.ing Your Checking And Credit Card Accounts (2)
The mechanics of bill payment (e.g. check, cash, online, automatic withdrawal) are entirely up to you, but, sitting down twice a month and arranging for your bills to be paid on or before the date they are due will simplify and smooth the paying of your bills.
The Importance Of Agreeing On The Closing Date (3)
Richard Reichmann is internationally known as a millionaire maker. He's a leading consultant in real estate and internet marketing strategies that are profit proven. Subscribe to our FREE newsletter Value $147.00 www.InstantRealEstateWealth.com
The 13 Factors That Determine Your RV Insurance Rate (4)
Recreational If you plan to live in your RV full-time, you need an insurance policy that works like a floating home-owners policy that follows you everywhere you go. If you're a weekend warrior, you can get different coverage that won't cost you as much.
Homebuyers More 'Careful' About Debt (5)
"They'll know what the mortgage payment is, but then all the other odds and sods start hitting them and they suddenly realize [that] actually it is all racking up to be a bit expensive," he commented.
Brits Advised To Prepare For 'Financial Emergencies' (6)
The company also reported that recent increases by the Bank of England's monetary policy committee have currently left interest rates at a six-year high. Despite this, Birmingham Midshires stated that in spite of the resultant rising difficulty in making secured loans repayments, consumers should look to make as best use of the rises as possible and put money into savings schemes.
Young People 'Lose Stigma Of Going Into Debt' (7)
A quarter of those aged 24 and under claimed that they were borrowing money to pay for things which they didn't really need, with borrowers between 25 and 34 choosing to get money to help purchase a house.
Rise Noted In British House Prices (8)
Across Britain, London was reported to have particularly driven price growth, as annual inflation in the city surged by 17.5 per cent as the average home in the capital now costs 332,009 pounds.
Decrease Recorded In First Time Buyer Numbers (9)
Findings from the company also showed that an ever-rising number of prospective first-time buyers are looking to fix their monthly secured loan repayments. An estimated 90 per cent of such consumers opted for a fixed-rate mortgage during the month - a rise of one percentage point from May and up from 83 per cent recorded from June 2006 - the highest proportion witnessed since the fourth quarter of 1991.
Graduates 'Face Debt Sentence' (10)
Despite 49,300 (17 per cent) of students will be 11,000 pounds in the red, findings from the price comparison website showed that 14,500 (five per cent) around debts of more than 20,000 pounds, with some respondents having more than 30,000 pounds to pay back.
House Price Growth Falls (11)
However, the council reported that borrowers are still set to face pressure placed upon their personal finances as potential property purchases look to take out a mortgage at a record multiple to their annual income.
Cheap Car Insurance Quotes - Choosing The Best Auto Insurance Company For You (12)
Many companies will offer lower or cheaper insurance rates or more affordable rates than others with the same type of policies. Make sure you find out exactly how much deductibles will be and any conditions attached to them.
Fixed Rate Deals Can 'Insulate' Consumer Spending (13)
Keywords: mortgage, income, multiples, stretching Opting for a long-term fixed-rate deal can help homeowners keep themselves "insulated" from any predicted future interest rate rises, an industry commentator has suggested. Following five base rate increases by the Bank of England's monetary policy committee over the last 12 months, Paul Fincham, spokesperson for Halifax, claimed that choosing such a product will keep consumers' secured loan repayments consistent over a set period of time.
The Art Of Hedging In Options Trading (14)
As with any investment strategy, make sure you understand the pros and cons before laying down your bet. Richard Cochrane is an investor, trader and educator on stock and options trading, with a focus on day trading and swing trading strategies for investors.
How To Select The Air Miles Credit Card You Need (15)
Some will give you as much as 2 air miles per dollar spent. The best air miles credit cards allow you to redeem your points for other things, too, like hotels, car rentals, brand name merchandise, and more.
The Truth About Bad Credit Secured Loans (16)
By taking out such a loan the borrower's credit score will actually improve as long as the repayments are met in full. Bad credit secured loans are, indeed, unique solutions for people with bad credit records which make the loans suitable for debt consolidation as well.
Duties Your Asset Management Company Must Perform (17)
- Asset management companies will also look into the bookkeeping affairs of the company. They will maintain the records for accounts, and will provide updated records in regular timeframes.
What Are Your Options To Pay For Your College Debt? (18)
Another step is a Pell Grant that is simply money given to you because you are in a financially low bracket. This can only work for a certain percent of people, and you have to be married and in your mid 20's or coming from a broke background.
Retirement Benefits Do Not Fill Financial Need (19)
In order to maintain their quality of life, they will need something to supplement the government retirement benefits they earned during their lifetime. Although many people will also receive benefits from the place of employment, that plus Social Security retirement benefits still may not equal the income they were receiving while they were working.
How An Agent Can Help Sell Your Home Fast (20)
Many times you may open your doors to unknown vendors as well as naive and unqualified buyers. In the real estate business, you might sometimes face issues that may put you in a difficult situation.
Newer Articles Highlighter:
Save Money When Buying A New Vehicle: What You Need To Know (1)
Here's what you need to know. Do Your Homework Savvy car shoppers go to the dealership prepared. You can save big with just a few hours of online research.
Business Building Realtor Resources (2)
After all, who likes doing things just because somebody tells you to do them, or because they say so? Click www.farmingexpiredlistings.com to learn how to average 1 or more listings a week and www.real-estate-marketing-talk.com for more lead generating ideas.
HUD Home Foreclosure: How It Can Benefit You (3)
HUD homes are sold through the US Department of Housing and Urban Development and all of the homes they sell are foreclosures. This is how it works: The HUD home foreclosure is actually a residential property that has been foreclosed upon.
How The Credit Card Offer Should Be Assessed (4)
These fees include the annual fees, closure fees, late fees and overseas transaction fees. The annual fee can be avoided if you pay your bills on time and if the company terms state so.
Seaside Homes Witness 'Strong' Price Growth (5)
There are still some bargains to be had for home buyers. Bridlington, Lowestoft and Great Yarmouth are the three seaside towns in Britain that offer the best value for money.
The Best Refinance Investment Property Interest Rate (6)
A broker has access to literally thousands of lenders and programs to choose from. They can suggest lenders for just about every scenario possible. If you have bad credit, if you are self-employed, etc., no matter what your unique situation is a commercial mortgage broker can help find you the absolute best deal possible.
Debt Consolidation Financing - What Are The Effects Of Inflation And Interest Rates (7)
Two inflation indicators to be considered. Since oil is a very common commodity that is tied to a large percentage of production costs of other items, as the price of oil increases inflation is most likely to heat up a little, hence look at the price of oil options to see whether prices are expected to be higher or reduced in the future.
Investment Property Software Saves You Time And Money (8)
One of the best things that investment real estate software can do for you is to let you know when it might be the most profitable to sell any given property which you own.
Financial Services Loans For Buying Automobiles (9)
The people can go online and go through a painless application process and have the answer on their loan approval in a matter of minutes. The loan approval standards for online financial services loans are very different than those offered by a local bank.
Who Qualifies For Low Interest Rate Credit Cards? (10)
Once you have started to build up a credit history, you really need to look at what you are getting from your current cards. If the rates are high it's time to reassess what you are getting.
Real Estate Financing - Home Mortgages - Time Tested Tips (11)
Insiders know that the advertised mortgage rates you find are not always what you'll get from the lender - it could be fluctuations in the market, good or bad economic news, any other of a dozen reasons, but interest rates can change even throughout the day.
Beware Of Credit Repair Scams (12)
In most cases the collection agent will be motivated to close your file as soon as possible.They will usually be willing to accept a quick payment at a discount so they can move on..
Unsecured Loans Your Solution To An Improved Credit Score (13)
While television advertisements and newspaper ads can be tempting, it is better to research a number of established and reputable loan organizations. Many "get money now" companies have hidden costs and penalties which consumers are not aware of until after they sign the papers.
The Nature Of Currency And The Stock Market (14)
If you are a long term investor, a day trader, or a causal personal investor all these currencies have good liquidity, good trend performance (short and long term) as well as daily peaking for day traders.
How To Find The Right Investment For You (15)
Most people are more than willing to share their successes with you. Remember to balance advice with sound research and invest in companies you trust and like. Mika Hamilton runs a website offering free investment tips and strategies for people looking to get started in the investment world.
Explosive Real Estate Marketing Techniques (16)
2. Sequential Autoresponders. Using sequential autoresponders is a great technique for pushing your way up the line another place or two. Basically, autoresponders allow you to do just that, automatically respond to requests for information.
Understanding Hedge Funds (17)
In 2004 alone Hedge Fund investments passed one trillion dollars. By the middle of 2004, 39 companies held 1.1 trillion dollars in their Hedge Fund. Making a profit from a Hedge Fund is all about the timing.
It Is Important To Start Investing Early (18)
In essence there is nothing wrong with this. It is a stage of life like any other and it comes with its own lessons to be learned. Truly, the most important thing to keep track of in this period is avoiding any significant debt; this is doubly true if you are just getting out of school and already have that education debt hanging over you.
Investing Mistakes That Can Cost You Big Money (19)
This is especially true when investors do not see quick enough movement and growth in their stock portfolio. Long term investing has a different meaning for the causal investor who is often scared into selling because of normal drops in stock prices.
You Need A Wealth Creation Strategy (20)
Real estate is the cornerstone of the most successful wealth strategies. So a first step in becoming wealthy is to become a homeowner. Next, you will want to consider any disposable income and look for investments you can use it for.
Permalink to Affordability Remains ‘Major Issue’ For First Time Buyers