House prices and shortages affect FTB’s

First time buyers are again the ones being hit the most by the recent exagerated house price rises, recent research by Haart the estate agent shows that the average price of a first-time buyer home increased £4,150 in June , that is £12,000 over the last 12 months.

Not only are house prices flying at the present time but there is intense competition to buy, it was further reported by Haart that there are 11 buyers chasing each new property coming onto market, increasing to 20 in the capital.

The Chief executive of Haart Paul Smith reportedly  said: “A potential first-time buyer on an average salary of £27,000 must be prepared to spend 42% of their take home salary on mortgage repayments, showing the traditional rule of spending no more than 30% of income on housing is no longer reality for many.” He added to this comment by saying “The only solution to this is to unlock the market and free up supply”.

In response to this housing crisis  a new All-Party Parliamentary Group for Housing and Planning was announced on the same day as the Haart report. Members of parliament from across the political spectrum have come together to put forward recommendations to deal with the shortages in housing supply in both rental and private ownership sectors.

The APPG which includes both Tory and Labour PM’s as well as cross-bench peers will be chaired by James Cartlidge, the Conservative MP for South Suffolk, he reportedly said housing is “increasingly becoming one of the most critical policy challenges facing local and national government” and is “likely to become more political and controversial”.

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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