First-time buyers have great chance to get on the ladder
First time buyers are quids in as UK housing market growth continues to stall.
For the fifth month in a row house prices grew by less than 1%, according to the UK’s largest building society, Nationwide.
Many people will say this is a bad thing, but spare a thought for the first time buyers who could only afford a cardboard box under a motorway bridge in London if they have a spare £500,000...
Look, stagnation in the housing market isn't good for people looking to sell, especially in a hurry, but it could help some actually get a foot on the ladder.
They're also being helped out by some firms providing 95% fixed-rate mortgages, which A Spokesman Said highlighted back in February.
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While the flow of new properties coming on to the market has slowed, it was not enough to turn the market back in favour of sellers, with prices up by 0.4% in April, rising slightly faster than the 0.2% recorded in March.
Robert Gardner, Nationwide’s chief economist, said: “While the ongoing economic uncertainties have clearly been weighing on consumer sentiment, this hasn’t prevented further steady gains in the number of first-time buyers entering the housing market in recent quarters.
“Indeed, the number of mortgages being taken out by first-time buyers has continued to approach pre-financial crisis levels in recent months.”
Jeremy Leaf, a north London estate agent and a former Royal Institution of Chartered Surveyors residential chairman, says: “Soft growth in the last set of figures from Nationwide is continuing and confirmed on the high street.
“Clearly, Brexit uncertainty in the minds of homebuyers is still outweighing almost record low mortgage rates and employment numbers as well as improved affordability.
“A glimmer of good news is that first-time buyers are taking advantage, particularly of help to buy and deposits from the bank of mum and dad, not forgetting reduced competition from landlords.”
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