i think until banks give morgages at a decent rate to FTB's houses will continue to fall
If you are buying for somewhere to live and you intend to stay there for at least 7-10 years then buy now especially if you are paying rent.
If the house that you want to buy drops by £5000 in the next 12 months but you pay £6000 in rental then it would be more prudent to buy the house now.
I don't think it has much to do with the rates being offered to first time buyers.
But rather more to do with the fact that the 100% mortgage no longer exists.
Bottom line is first time buyers will need to have a deposit of at least 15% of property value.
The average first time buyer is going to struggle to raise £15k for a deposit on a £100k property. That's assuming that the buyer has a snow white credit rating and is considered by the banks to be an eligible applicant for a mortgage in the first place.
Renting will be the only option for lots of people .. rents will go up... property prices will continue to fall until the banks stop shitting themselves.
If you are in a position to buy though, there are some amazing bargains out there. We viewed a converted cottage at the weekend that was almost sold at christmas for £375K, but the buyer lost their job, and the seller is that desperate to sell it's now dropped to £249K. Was valued at £400K a year ago. We're doing everything we can to get it, cos we would never be able to get a house like that ever again!
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