do you think the uk housing market will slow up enough to allow 1st time buyers to purchase a property.?

Question

What are your honest predictions...any property agents out there on yahoo answers who will give an honest evaluation for the next 1-2years?

Answer 1

I think over the next 1-2 years the prices will slowly rise as the demand is still growing. It will probably rise around 4% per annum for the next couple of years.
If you are waiting until you can afford then unfortunately you will not be able to afford it!
You need to make that decision now but do your homework and do not over stretch yourself.

There is never a bad time to purchase property, even in a slowing market with interest rates rising, property prices since records have began have always risen to a highr peak after a fall in the market! As long as you can afford the repayments when the cost of living does rise then do it!
Get a fixed mortgage you know then what your outgoings are going to be every month and if the interest rate does go back up to what it was in the 80's 15.75% I know I was one of the lucky people who were paying this! You are safe. Then when the market starts to pick back up you can sell on at a profit!!

Good luck!

Answer 2

It is less about the market and more about the individual. There are 1st time buyers (FTB) who buy every day in the UK.

Prices are not 'affordable' in many locations. In some the prices are pretty reasonable for a FTB if they earn an above average income. In the London metro area prices are really high relative to most people who trade time for money (normal job). Even there some FTB are still buying though they might be older and have savings built up or have advanced in their career.

Note that in the UK a FTB is someone who has not owned a home in the last 6 months. Hence even the FTB statistics are not going to reflect a young person who is in their first job.

There is a multi-year debate on the topic on the Motley Fool UK. The Property - Market & Trends forum. I have provided a link. The forum is free. I am a bit of a regular their under 'activeREinvestor'.

Some people buy with a partner. Some buy with a parent helping. Others buy a flat on their own but get 1 or more roommates to make the monthly affordable.

Answer 3

Well - I am on my second home and was over 30 before I bought my first... so I have no axe to grind.

The market is predicting that houses will rise again throughout 2007. This is BAD for you and something of a problem for building societies too - they need first time buyers to fuel the housing market.

But... there is a strong chance that interest rates will also rise heavily over the next year as well. Inflation is starting to take root - fuelled by the service sector pay rises above inflation.

Historically - jumping on the housing band wagon any way you can has been a good call - but buy something modest - with a mortgage payment less than your current rent. Then - all things being equal - you can live if things get tough. You just can't move.

Don't buy a four bed detached first time round...

Answer 4

What you are after is a property crash. There is nothing else that is going to allow first time buyers an easier time of buying.
First time buyers are in fact blessed by not being in a chain, so as long as you can save enough towards a deposit, you can buy more easily than some who already have a property.
We might see a correction in the next year or two and increasing interest rates may compound that, but that won't make it any easier for first time buyers as borrowing will still be expensive.

Answer 5

Doubt it mate. I feel sorry for the younger generation.
It's a sad day when even young Professionals can't get a foot on the property ladder!
Look into shared Ownership- part mortgage part rent through housing associations.
Another option is to share the cost with partner/friends with a joint mortgage, some allow up to 4 people to 'club' together.
It's a sad fact that people who already own property get mortgages for 'buy to let' on housing.
In other words some poor sap is paying them £500+ rent every month to make them even MORE money!
I'm afraid its pay away your wages to the property owning classes or relegate yourself to chav council housing.
Hopefully in the future government will tax those with several properties who are clawing in money from our younger generation.
There is talk of a 'crossover' generation of young professional people who will not accept the status quo as it stands at the moment. The last time this happened was in the 1960's.
Many academics in social issues research think that this will be the only chance for young people to make their wealth and feel included the way their parents and grandparents generation did.

Answer 6

It all comes down to interest rates.

When rates are low (now) a lot of people can afford to buy second houses and because the Mortgage payments are low, it is possible to Rent Out the second house to cover the Mortgage payments.

This has created the 'Buy to Let' Market ... and whilst it is still possible to cover Mortgage payments by renting out the house, people who can afford to will keep buying the houses.

If Interest Rates go up too far, a lot of people will suddenly discover they can not longer pay the Mortgage. Their houses Will be repossessed and this could cause a drop in the Market.

But whilst it is still possible to Rent Out houses and pay the Mortgage, the re-possessed houses will be 'snapped up', thus keeping prices high.

Only when the Rent becomes significantly lower than the Mortgage cost will the 'Buy to Let' crowd will dump their houses and cash in their profits. When this happens the housing Market will drop like a stone - after all, who is going to buy when it's significantly cheaper to Rent ?

Answer 7

Keep your money in the bank for now, wait for the crash and then you will be able to buy a property at a real value.

I just sold my flat 2 months ago and am now renting with my money on the side for when we will be in a buyer market again. It will come sooner than most people think....

Answer 8

there are always houses in need of renovation a fraction of the price of other houses, may be worth contacting your local councils estate department see if theyve anything for sale, they sold a shop with two bed flat above it in my area 6 yrs ago 3,500 yep thats 3 and a half thousand, it was bought up by family housing association, the council do get a lot of property that needs to be shifted as they are not allowed to keep it, usually if theres any notice of sale at all its on a minute leaflet stuck on the fence or the door of the for sale property, otherwise the only time you will know is by asking estates (and not all they do is in need of renovation either )

Answer 9

If i do no longer forget approximately properly, the inventory industry crashed in 1986. It replaced into as quickly as in some procedures worse than the crash of 1929. yet no longer something lots got here approximately to the common character. it looks the prerequisites that created the catastrophe of 1929 have been corrected. relatively some clientele known the loss as a "paper loss;" i.E. The inventory is worth much less, even though it is not appropriate once you do no longer sell it. In time, the inventory might pass up back. And it did. I heard relatively a pair of persons of modest shows that pronounced they have been paying for inventory after the crash, using incontrovertible fact that they knew the relatively worth might pass up now.

Answer 10

not in the next few years, you may wanna start saving so that you can put up some of the capitol yourself, therefore you wont need a large mortgage and can get a better house for the money you can borrow