|
 First-time buyers (FTBs) are being forced to jeopardise their own future if they want to make it onto the property ladder.
That is according to Firstrung, which is advising FTBs not to buy a home now unless they are completely certain that they can afford it.
It is bad news for homeowners who are looking to sell as a dearth of FTBs makes it very difficult to shift a property.
Interest Rate Rises | Sell your property quickly
However, things look set to get worse with economists almost unanimously predicting further interest rate rises in the coming months which will add to the climate of decreasing affordability.
Paul Holmes, chief executive officer of Firstrung, had this advice for FTBs: "At the moment if you can afford it easily - as long as you do your homework and buy with a discount and really research the area - then go ahead and buy.
"If you are struggling and really pushing the envelope to buy then now is the wrong time to do it.
"I would advise these first-time buyers just to sit and wait and see what the next 12 months bring," he added.
Julian King of National Homebuyers says, "The lack of first time buyers will hit home sellers very hard". National Homebuyers is the UK's leading fast purchase property firm,guaranteeing to offer to buy any property in the UK for vendors needing a quick, simple sale.
King continues, "Traditionally FTB's account for 45-50% of property transactions, with the current climate, I expect this to be more like 20-25%.
"This means that a quarter of all property buyers will simply not be available. Remove 1 in 4 potential buyers and the seller has a problem.
"A further interest rate rise will also push more properties on the market with no-one around to buy them".
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
