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Expert claims first-time buyers’ problems are overstated

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  • 01/02/2013
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Expert claims first-time buyers’ problems are overstated
Second and third-time buyers are struggling to obtain a new home and mortgages more than 'highly-motivated' first-time buyers, a London property developer has said.

Safeland managing director Larry Lipman told the Jewish Chronicle that first-time buyers were fine in the current market and that mortgages simply took ‘a touch longer’ to complete than before.

“First-time buyers just want to move out of home, and own their own flat. They are highly motivated and their risk profile is very different.

“They have the savings, they are going to do it. And we are in a low interest-rate environment, so mortgage payments are lower than rents, so it works.

By contrast, he told Mortgage Solutions, second and third-time buyers seemed to be struggling: “Once you get into that £500,000 – £1m range which is typically one of a second or third-time buyer in London and you look at how much equity they will require – that is what is causing the problem.”

Lipman founded Safeland in 1986 with his father and brothers. A property trading, development and investment specialist, it converts property into residential homes and sells them, usually to first-time buyers.

 

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