Housing boom drives off first-time buyers
21 April 2004
Over a third of first-time buyers have given up hope of buying a home in the next 12 months, a new study has revealed.
The quarterly Housebuyers' Survey by Yorkshire Bank found that 37 per cent of would-be home owners do not think they will be able to buy in the near future because of the relentless rise in house prices and the prospect of further interest rate hikes in 2004.
However, this is doing little to cool the housing boom, as the dogged determination of other first-time buyers is keeping prices high.
According to the report, nearly half of prospective first-time home owners admit they are prepared to buy homes they do not really like (41 per cent), in areas they do not want to live (36 per cent), and pay more than market prices to secure them (21 per cent).
"First-time-buyers clearly need help … especially as their predicament is endangering the property market as a whole … but we are firm believers in responsible lending," Gary Lumby, head of personal financial services at Yorkshire Bank, commented.
"Excessive lending is just adding fuel to the fire of property prices."