Young First Time Buyer Put Plans on Hold

by Mark Johnston

More people in the United Kingdom want to be home owners than ever before. Buying and owning a house is now seen as a right and not a privilege. But many of these potential home owners are young first time buyers who are deciding to but their plans on hold.

New research by the Council of Mortgage Lenders (CML) has shown that many are now putting immediate plans on hold for a while until the market improves and jobs the job market is more secure.

Almost eighty five percent of those questioned said that they expected to own their own house within the next ten years. This is the highest ever recorded since the Council of Mortgage Lenders (CML) started to collect data and carry out research into potential home owners back in 1975.

Almost there is a marked rise in the number of people hoping to own their own house in the next ten years, there has been a fall in the number who are looking to buy in the next two years. Three years ago seventy eight percent of polled people wanted to own their own home within the next two years where as the recent survey has shown a marked drop to seventy six percent.

The Council of Mortgage Lenders (CML) research demonstrated that few people want to own a home in the next few years but the appetite for home ownership was still there as if anything was growing. Young people still have home ownership as an aspiration although only forty two percent of those asked between the ages of eighteen and twenty four said they wanted to own a house in the next two years. The interesting thing was that within this age group eighty eight percent still wanted to own their own house but within a longer time frame of up to ten years.

The research came out the same time as data that was published by LSL Property Services which showed that landlords increased rent in august for the seventh month in a row. These were the steepest increases since September 2008. In the United Kingdom, the average cost of renting a home rose by 1.4 percent over the last month taking the average price to around £690 per month. This was the biggest monthly increase since this time last year which probably accounts for a shortage in rental property due to an increased number of people delaying house purchasing and choosing to remain in rented accommodation.

For those who are still looking to get on the property market with their first house purchase, there are some good deals out there. The Yorkshire Building Society are offering a 90% loan to value (LTV) mortgage so borrower would only require a 10% deposit. The fixed rate loan is has a rate of 4.99% for the next two years after which it reverts to the building societies standard variable rate (SVR).



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