by
Autonet Insurance
| Feb 08, 2012
Housing listing website Rightmove have published a report that reveals there is a lack of first-time sellers which is what first-time buyer’s need.
The report showed that first-time buyers who are thinking about purchasing a home has increased to 24.3% but this could be higher if there were more first time sellers wanting to sell their properties.
As a result of the lack of first-time sellers the number of terraced houses that were on the market towards the end of 2011 dropped by 31% and by 28% compared to earlier in the year.
People who bought their first home are in a situation where they cannot sell on and move up the property ladder because they will be left with negative equity on their home. This is because house prices have dropped below the mortgage value on their home.
Miles Shipside, Director at Rightmove commented on the report: “First-time buyer levels remain well below historic norm of 40%, but a slight increase of 1.4% on last quarter of those intending to buy for the first time offers some encouragement for the year ahead.
“The main issues of affordability and mortgage availability that have blighted first-time buyers over the last few years remain.
"Our research also provides evidence of an emerging new home-ownership challenge in the form of a lack of available properties that would typically be brought to market by first-time sellers.”
Regional selling is set to stay the same with 41.5% of first-time buyers expected for the London area but the East Midlands is lower with only 19% of first-time buyers expected.
Lending is also expected to become more difficult for first-time buyers with the lending criteria to be tightened due to the economic climate even though house prices are currently the lowest they have been for years.
We recently wrote an article about the housing market for young buyers. Click the title to read. Young buyers struggle to move up the property ladder.
© Copyright Autonet Insurance
By Amanda Bainbridge