New buyers need £11,000 less
- 27th October 2009
- Buying Property News
First-time buyers helped onto the property ladder by family as starter homes become more affordable.
Recent data from the Council of Mortgage Lenders (CML) reveals that lending for the purchase of residential property has risen for the first time in two years.
Research from Find a Property shows that once a mortgage offer is in place, buyers require £11,000 less than they would have done at the start of 2009.
While asking prices in the upper end of the market appear to be rising, the lower end of the market has seen a fall of 3.7 percent.
The average asking price for first-time homes was £160,174 at the start of the year, representing 5.3 times the first-time buyer household income. This figure has now fallen to £154,205, 4.8 times the average household income.
The typical figure needed from a first-time buyer is still reported to be £55,700, with 55 percent of people aged 25-34 receiving financial assistance from family.
Director of Find a Property, Michael O’Flynn, commented:
“Despite some efforts by lenders recently to launch new products aimed at first-time buyers, stricter lending criteria still means that the average new buyer still has to save 1.74 times their gross, pre-tax income for a deposit, which is no mean feat.
“However, their parents often recognise that the market is beginning to offer good value to first-time buyers and this may be the time to take the plunge. Returns on savings in the banks remain extremely poor, so property purchase by their offspring could be a wise financial move.”
The market is beginning to offer good value.
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS