New research from Leeds Building Society paints what it calls “a harrowing picture” of the housing market for first-time buyers.
It claims prospective buyers are putting plans on ice due to concerns over unaffordable mortgage rates and rocketing rises in energy and living costs.
It says 81 per cent first-time buyers agree that the cost-of-living crisis has made it harder to save for a deposit, while 60 per cent of those planning to buy in the next five years have delayed their purchase, on average by 18 months.
Some 49 per cent of aspiring first-time buyers now doubt if they will ever be able to buy a property.
The research - conducted in late October during the dying days of the Liz Truss government - suggests that of those potential first timers delaying the plunge have done so because of the rising cost of living (21 per cent), higher mortgages rates (19 per cent) and falling house prices (20 per cent).
Of those that have decided to delay their purchase, 89 per cent say it will be for six months or more – and the average expected delay in buying is 18 months.
People have done so in the hope that the economy will have improved enough to make buying more affordable then, suggesting they don’t have confidence in short term improvements to the economic climate.
Richard Fearon, chief executive of Leeds Building Society, says: “The findings from our research are stark but clear: the home ownership dream in the UK is in crisis. Houses have never been less affordable, and the cost-of-living crisis and the recent increases in interest rates are a further blow to those hoping to buy.
“In the short term, a stronger case needs to be made for Shared Ownership to help more people get the keys to their first home. The key advantage of Shared Ownership is that buyers need a smaller deposit, potentially allowing them to buy sooner than they might otherwise.
“There is a clear lack of awareness about the benefits of Shared Ownership and lenders, brokers and estate agents all have a role to play in changing that.
“However, delivering meaningful change to the housing market requires a number of more structural issues, including building more homes.”
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Well I will be making sure my children will be buying and not renting!! Unfortunately that will mean some of my tenants being evicted to free up the capital… it’s a dog eat dog world out there, unless the government built millions of houses then this will continue and get worse… survival of the fittest, Darwin lesson 101.
There is still demand to buy out there. If I was a first time buyer i'd pause currently, but with mortgage rates already coming down i am not so convinced of this survey. A lot of economists, though not all, are talking of a soft er landing economically speaking.
Simon is quite right, the Tories really have turned the screw and dog eat dog is very apt.
I am trying to do right by my long term tenants and ensure that I have a good business (sorry investment) to run, but the Government policies make this very challenging.
Immigration ,! Encouraged by successive governments,bon essence ethnic cleansing of the indigenous population.
"In essence '
Shared ownership ? a con, how can you sell half a house, who in their right mind would buy half a house ? either rent or buy.
Shared ownership is a con. There are going to be a lot pf people in trouble with this when their fixed rate runs out.
The only way shared ownership works is when friends club together, these Government schemes only help the new builds to sell and charge more. Parasites!
I'll buy all the stuff made out of bricks you can have the rest
Throughout my lifetime there have been times when buying is a good idea and times when not rushing into it is a good idea. Only the benefit of hindsight will eventually tell us if we made the right decision.
My husband always says "The time to buy is when someone is willing to lend you the money".
I had a meeting with my mortgage guy today he says nobody is buying just now (with mortgage) so a bit different to what estate agents are saying!! He has dozens of remortgages per week and so lots of very unhappy people, I wonder how long before that filters up to the Govt.
Well there’s other times if you can afford, I bought one in 1991 for £93k it had been bought a few years earlier for £136k. The person that had it was over stretched and had a lot of Trouble with Tenants and no longer prepared to keep paying for a house that wasn’t worth it. So many other times and diffident scenarios as well.
So if you can buy when others at broke it is a good time but I don’t like it.
But that's business Michael, if someone has bought at the wrong time and paid too much, and likely borrowed too much as well that is not our problem, if we don't buy it at a reduced price someone else will
That’s exactly how it is, I seen it in the mid 70’s, early 80’s and 90, I believe I have witnessed it 5 in different periods, this is very likely another one in the normal course of events but this time the Markets won’t decide. Its being interference with and manipulated by Government getting the new boys to come in giving them every advantage and bailed out if necessary.
Also we don’t need hindsight (but don’t matter to us older generation ) when Recessions hits. just watch them drop sit tight and wait until it has bottomed out, then it a safe bet. I have done it no Bristol University data or education necessary.
Just common sense Michael, now Bristol University would never grasp that would they?
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