House prices and shortages affect FTB’s

July 28, 2015

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.

You May Also Enjoy

Home and Living

4 Ways to Create Your Dream Show Home Kitchen

As a real estate worker, you’ll likely be familiar with creating a show home kitchen, but in doing so, there’s a magic formula to follow to ensure that your show home kitchen will attract and transfix your potential house buyers. If you want to create a kitchen to remember, here are some top tips and…
Read More →
Estate Agent Talk

4 Strategies for Getting the Best Electricity Deals for Your Business

Electricity is one of the most significant operating costs for businesses in the UK, and finding the best deals can make a considerable difference to your bottom line. With energy prices fluctuating and a complex array of tariffs available, securing the most cost-effective electricity deal requires a strategic approach. In this guide, we’ll explore four…
Read More →
Breaking News

Breaking Property News 11/09/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Glider, an innovator in information management solutions for the built environment, purchases EDocuments This strategic move will enable the combined companies to offer expert support throughout the entire asset lifecycle, from design and construction to operation. As the construction industry evolves to meet new regulatory…
Read More →
Estate Agent Talk

Housing Report: Regions with the Largest Drop in Cash Property Purchases

A new study has uncovered the UK regions with the most significant falls in cash purchases on properties since 2013. Harlow saw the largest decrease between 2013 and 2023, with a 44.9% decrease in cash property purchases. Alongside Harllow, Barking and Dagenham came in second with a fall of 41.4%, and Thurrock, Essex, in third…
Read More →
Rightmove logo
Breaking News

Rightmove agrees new partnership with Women in Estate Agency

Rightmove, the UK’s largest property website, today announces that it has agreed a new two-year partnership with the property network Women in Estate Agency (WIEA). WIEA is formed of a range of property industry professionals, both women and men, who give their time to drive change and equality for women across the estate agency sector.…
Read More →
Breaking News

Rental Reform Needs to Work for Tenants and Landlords

Speaking ahead of publication of the Renters’ Rights Bill later today, Ben Beadle, Chief Executive of the National Residential Landlords Association said: “Plans to reform the private rented sector have been on the table for over five years now. Above all, renters and landlords need certainty about what the future looks like. Whilst we await…
Read More →