House prices at record highs due to first time buyer demand
It’s good news in one respect but not so good in another, as the demand from first time buyers has put a huge demand on the properties that are currently for sale. This rush for property has caused a price increase up to £296,549, which is 5.6% higher than it was a year ago, the huge demand from first time buyers, anxious to get onto the housing ladder, has meant that in that particular bracket the price rise was nearer 10% in the same period.
As pointed out by Rightmove, the higher prices that are facing first time buyers confirms what has been known for a long time, there is a shortage of property in the first time buyer bracket and this has not been helped by the ever increasing demand form buy-to-let landlords who are responding to the significant need for rented accommodation.
It is clear that in spite of the tightening up of the criteria for lending which was introduced last year, first time buyers can afford the higher asking prices imposed by sellers. Property website Rightmove also pointed out that the competition seen between first time buyers and landlords has caused there to be a vicious circle, the obvious shortage of houses has made in more costly to either rent or buy a home.
The rental market is particularly buoyant and agents acting for landlords are reporting that as soon as a property becomes available it can be snapped up on the first day, Rightmove believes that many are now attracted to the rental market to avoid the commitment and hassle of buying and selling a property.
Of course, many people are laying the blame at the door of local authorities, housing associations and developers, who are not any longer satisfying the needs of those who are looking to rent or buy smaller homes. It would appear that only the army of privateer buy-to-let investors remains the short to medium solution to the country’s housing needs.