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You are here: Home / News / First Time Buyers See Deposits Soar
First Time Buyers See Deposits Soar
Date
24th Feb 2010
News Story
The Scotsman newspaper of Saturday 20th February reports on the fragile state of the first time buyer ( FTB ) market.
The piece by award winning journalist Jeff Salway echoes the tone of conversations our sales negotiators have been having for over a year now with clients selling flats and other typical first time buyer properties. That is that sadly the entry level to the market is one of the most difficult to be selling in and with first time buyers still thin on the ground those selling in the sector need to be patient and realistic.
The average deposit for an FTB has grown by 140% in Fife in just two years with a deposit of circa £16 000 now being required before stepping on to the first rung whereas in 2007 that figure stood at approximately £6 000.
The average deposit for an FTB has grown by 140% in Fife in just two years with a deposit of circa £16 000 now being required before stepping on to the first rung whereas in 2007 that figure stood at approximately £6 000.
As Jeff Salway comments in the article, much of this is down to lenders simply not lending to FTB's with less than a 20/25% deposit. Michael Maloco, senior partner of the practice, commenting in the piece highlighted that without the "Bank of Mum and Dad", many first time buyers simply cannot get a foothold in the market.
A further article in Saturday's edition states "Hopes of Housing Market Recovery Look Distant". It deals with a new phenomenon of tenants not moving out after the initial 6 month rental period expires but instead looking to re-new leases due to the non-availability of mortgage funding.