Eight Out of Ten Towns Unaffordable for First Time Buyers
The inaugural Halifax Annual First Time Buyer Review is now available under embargo 0001 HRS SATURDAY 6TH MARCH 2004. The FTB Review tracks housing affordability, and associated issues specific to those buying their first home. The review is compiled using information sourced from the Council of Mortgage Lenders, the ONS and the Halifax’s own extensive housing statistics database. Halifax is the UK’s largest mortgages and savings provider and also publishes the longest running monthly house price index in the UK.
The inaugural edition of Halifax’s Annual First Time Buyer Review shows that of the 667 main UK postal towns, 531 (80%) were unaffordable for the majority of those buying their first home during the last year.
The press release and the full list of the 667 postal towns can be obtained on request from pressoffice@halifax.co.uk or by telephoning +44 (0)1422 333829.
(Distributed by PR Newswire on behalf of HBOS Group)
Articles such as this highlight this growing problem and raises the question - how will this affect the overall housing market? Some feel that the first time buyer predicament will lead to an overall housing market crash. However we need to keep the bigger picture clearly in mind. Britain, more than anywhere else in Europe, is a nation of property owners. People feel comfortable with property. Yet if first time buyers cannot buy, they still need to live somewhere.
I believe that we are seeing a structural shift in the percentage of people living in rental property. Over the next ten years this percentage will see a sustained increase as first timers continue to rent, buy much later, or perhaps never buy at all. This is much more akin to the situation in Germany and France.
Any excess of rental property will be taken up by this trend and rental demand will continue to drive the hitherto first time buyer end of the property market. So, I for one done agree with the doom and gloom scenario. Those who are now building rental portfolios, making good property choices and furnishing them to a high standard are likely to see continued demand over the long term.
