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First-time buyers a rare species

The number of first-time home buyers is plummeting and set to hit a

record low this year, according to research from Nationwide.

It says that if the current trend continues, the number entering the

market will drop to 400,000, falling below its lowest-ever level of

1995 when the total was 435,000.

Its monthly house price report found activity in the housing market

dropped 6 per cent in the quarter to March with 123,000 house sales

from 131,000 in December.

It attributes this fall to fewer FTBs in the market, a result of a

demographic fall in the numbers of 20-34-year-olds and lifestyle

changes such as people going into higher education and settling down

later in life, as well as affordability.

In the first quarter of 2003, the average monthly number of FTBs

dropped by more than 25 per cent to 27,000 from 38,000 over the same

period in 2002. The price of a typical FTB property price is up by

nearly 150 per cent since 1995, to £96,000 from £38,912.

Nationwide&#39s report also shows that annual house price inflation

slowed in April to 22.2 per cent compared to 26.2 per cent in March.

The average house price in April is now £122,748, up from

£122,180 in March.

Group economist Alex Bannister says: “We expect affordability to

continue to reduce the ability of many first-time buyers to enter the

market. This, combined with the realisation that in the current

economic environment mortgage payments relative to income will not

fall as quickly as in the past, will produce a move back towards a

more sustainable pace of house price growth. A sustained period of

lower house sales and house price inflation looks a likely outcome –

even if this appears to be a return to the sort of housing market

cycles seen back in the 1950s.”


Govt is urged to top up savings for less well-off

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Revival of regional exchanges set to boost IFA business

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Coming of age

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Bubble and squeak

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The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


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