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Move to cities makes it tough for first-timers

People moving to cities in the UK are finding it increasingly difficult to get on to the first rung of the housing market ladder, according to the Economic and Social Research Council.

The research found that the combined effect of the rapid growth in homeownership over the last 20 years and more people moving to urban areas for employment make it increasingly difficult for first-time buyers to get a foot on the property ladder.

The research conducted in London, Birmingham, Manchester, Leeds, Liverpool, Newcastle and Sheffield and found they all share, to varying degrees, the problem of people not being able to afford their first home.

But it says having parents who are homeowners, especially in London and the South-east, is a good asset for people wanting to buy a property anywhere in the UK.

The ESRC also warns that it has found evidence to support the view that high house prices in London will force poorer residents to move out, making it a “playground for the rich”.

It says Londoners who become marginalised in the labour market because of unemployment and an increase in casual work are likely to move to other areas in the South-east and this trend is mirrored in other UK cities on a smaller scale.

Researcher Dr Michael Lyons says: “The difficulties in becoming a homeowner or moving into a &#39nice&#39 neighbourhood are considerable in all cities. Delays in getting a foothold in urban housing markets are worst in London, Birmingham and Manchester.”


C&G launches new mortgage

Cheltenham & Gloucester are set to launch a new Premium Fixed Rate Mortgage on Monday.The home loan is fixed at 3.99 per cent until November 30 2004 and is available for borrowing of £100,000 or more for LTVs up to 90 per cent.The early repayment charge will be restricted to the length of the fixed […]

Wesleyan in deal with the BMA

Wesleyan Assurance Society is buying Professional Affinity Group Services from the British Medical Association for an undisclosed sum. PAGS will continue to trade as British Mediacal Association Services.Wesleyan Assurance Society chief executive Peter McNamara says: “We are delighted to have reached agreement with the BMA to operate their membership services business, BMAS. I strongly believe […]

Platform and Verso combine sales teams

Platform Home Loans and Verso have completed the first stage of a merger between the two mortgage companies.The newly combined sales team will be able to sell the complete range of mortgages on offer from both companies.From September 9, the new salesforce will be on the road under the leadership of Jeremy Duncombe, former head […]

Heartland offers RIs chance to buy stake in the company

This week marks the 10th anniversary of Black Wednesday, the day on which Britain crashed out of the European exchange rate mechanism. The £ was suspended from the ERM on September 16, 1992 after just two years following its failure to remain within the currency band and under pressure from Germany, who wanted it devalued.National […]


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