by Mark Johnston
Buyers Concerned over Suitable Property Stock.
It seems that every generation has its pet economic fallacies and the one of the current generation is the importance of home ownership.
Current data has shown that buying a property continues to rank much more highly than getting married or having children in terms of ‘getting on with life’.
But this it seems is in decline, a recent forecast for the last three month of 2012 revealed that 25 per cent of those planning to buy in the next 12 months will be doing so for the first time, compared to the 40 per cent level before the credit crunch.
However, more than a third of all prospective first time buyers cite raising enough of a deposit as their single biggest concern.
Although recently it appears that we are now seeing how the issues facing second steppers are affecting the fortunes of first time buyers in terms of finding a suitable property to buy and local affordability.
Research has therefore shown that around 29 per cent of would be first time buyers have indicated that their single biggest concern is now ‘finding a suitable property to buy’, this figure is up from 24 per cent just a year ago.
According to the latest annual survey commissioned by Barratt Developments, in 2011 39 per cent of its respondents cited saving a deposit as their biggest challenge, followed by finding a mortgage and finding the right property came in third. By contrast, in 2012, 30 per cent of respondents cited finding the right property as the greatest obstacle to becoming a home owner, followed by saving a deposit and then finding a mortgage.
A Barratt Developments spokesperson, said of the findings “there has clearly been a shift with in the market with a growing belief that the availability of mortgage finance has become a little easier”.
So it would now seem that if these figures are to be believed locating an appropriate property has become more difficult than saving a deposit.
Many experts believe that the challenge of buying a home for the first time can seem very daunting that it can be tempting for first time buyers to either just go with the first house that falls in to their price category or continue to rent.
However, buying a property can be perhaps the biggest purchase of their life and therefore they deserve to have a property that fits both their needs and want as closely as possible.
Miles Shipside, director and housing market analyst at Rightmove, the property website, says “the list of challenges to get on to the property ladder seems to be getting longer rather than shorter”.
In conclusion it appears that the overall supply of available and affordable property has been diminished by existing home owners waiting out the recession before looking to move and also the fact that the big home builders are now just sitting on their land banks. Therefore building has slowed to a trickle in most parts of the UK.
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