You are here: Home - News -

Increase in house prices is deterring first-time buyers

by:
  • 01/12/2000
  • 0
By Ben Marquand Rising house prices are keeping young, first-time buyers out of the market according...

By Ben Marquand

Rising house prices are keeping young, first-time buyers out of the market according to a survey by the Royal Institute of Chartered surveyors (RICS).

The report shows that 30% more chartered surveyors are reporting a fall in sales to first-time buyers than a year ago.

Ian Perry, housing market spokesman for RICS, said: “There has been a marked decrease in the number of first-time buyers coming into the market. This is partly because they are put off by current house prices and also because some are aware that house prices may come down, so they are prepared to wait for a few more months.

“First-time buyers are not coming in at the bottom of the housing chain and this is slowing down the growth of the housing market.”

The National Association of Estate Agents (NAEA) has also published its own study of the housing market, which found that a third of first-time buyers are likely to be aged over 30.

Increases in house prices and the growth of buy-to-let schemes have meant that people are prepared to live in rented property until later in life.

Hugh Dunsmore-Hardy, chief executive of the NAEA, said: “Increasing house prices has meant that many first-time buyers are waiting longer before buying property. Now first-time buyers are finding it difficult to afford homes early on and are deciding to rent until they have more money and a partner to share the cost with.”

Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
MCCB introduces new regulatory framework

The Mortgage Code Compliance Board (MCCB) is to introduce a new regulatory framework for all mortgag...

Close