First-time buyers’ hopes of purchasing a home are slipping away
Younger buyers are losing out on gaining a foothold on the property ladder due to a lack of protection from unsuccessful purchases and ever-rising costs associated with moving home – which, of course, is also bad news for sellers.
For many young people, owning a house can seem little more than a pipe dream, given the current state of the property market.
Looking back merely 20 years at how affordable housing could be for a first-time buyer would undoubtedly have today’s youth tearing their hair out in envy. It is, perhaps, no surprise to learn that those aged 18-34 now consider buying a home to be of greater importance than providing for the elderly, or even enjoying lower energy prices.
New research by the consumer body Which? has found that the current outdated home-buying process is greatly flawed, and even those who do have the necessary resources have awoken to the worrying fact that three in ten house purchases are falling through – often at great expense to the potential buyer.
As a result, Which? Has discovered that an in-depth assessment and update of the way homes are bought and sold will be a key factor for many voters who are on the fence with regards to which political party they will support in future elections.
The greatest issue for those hoping to buy in the UK unlike many other countries within the EU is the ability for the seller to withdraw their property from sale at any point until the final contracts are signed.
Saddled with the high costs of solicitor and agent fees, buyers lose an average of £2,200 whenever a sale falls through – and with no legal framework to protect their investment in the process, a botched sale can set plans to own a home back by years.
While this may like an isolated issue for younger people, the knock-on effects are often detrimental to the industry as a whole.
The property industry consistently needs new investment to remain buoyant, and so is heavily dependent on first-time buyers joining the national pool of homeowners, as those who already own will often need a prospective buyer to purchase their home in order to move themselves.
The issue is even more bothersome for those of working age who need to sell their house fast for a new job, or to upsize for their families – as the process can be dragged out for months with very little interest from potential purchasers.
The problem is also compounded by the increasing fees associated with moving house, with research by Post Office Money discovering that the total cost of moving fees has risen to as high as £9,500 – 25 per cent higher than a decade ago.
Need to sell fast? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.