Recent action by the Government and Lenders, along with deals to assist buyers with their deposits, could make the next few months the perfect time for first time buyers to take advantage of falling prices.
Eighteen months ago, after ten years of continuous house price inflation, many first time buyers - young couples and university leavers - felt that they were being priced out of the market, with the only viable options being uncertain fixed rate mortgages. When the credit crunch hit last year, these types of risky mortgages were halted be lenders, giving first time buyers even less options to buy.
However, falling demand and subsequent falling house prices have had many first time buyers secretly rubbing their hands with glee.
Most experts believe that, prior to the credit crunch, house prices were inflated and were overdue a period of ‘correction’. Although prices are now reaching affordable levels for first time buyers, there are still two main obstacles stopping first time buyers coming back to the market - a lack of affordable lending and uncertainty about the right time to buy – the so-called ‘bottom of the market’.
However, Robin King believes that recent action by the Government and lenders may be particularly positive for first time buyers: “The recent action by the Government to cut rates, which seems to be being echoed by lenders, may attract many investors and general home movers back to the market, increasing demand and stabilising house prices. We may be approaching the bottom of the market that first time buyers have been holding out for.”
King continued: “I would urge first time buyers to take advantage of falling house prices within the next couple of months to avoid missing out. There are some great deals out there - especially part-exchange and repossession properties, which are being sold by home builders and financial institutions at incredibly low prices. Many of these properties also have incredible cash incentives to help buyers with deposits.”
Called ‘white hot properties’, they are priced realistically to sell and have no sales chains, making the buying process even more straightforward.
Robin King added: “First time buyers shouldn’t expect miracles – lenders are still going to be cautious about how they lend money and we will probably see more price falls in the near future. However, I do believe that the time is approaching for first time buyers to re-enter the market – which is great news for everyone.”
Go to www.whitehotproperty.co.uk or call this agent for more information.
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