uying a house in the
current housing market is A representative of the CIH said
tough. Becoming a "Young households are being
first-time house buyer is very forced out of the property market
tough. Recent research by the across the country ... It is
Chartered Institute of Housing particularly bad in areas where
Cymru (CIH) ( href="http://www.cih.org/" demand for homes is high."
target="_blank">http://www.cih.or
g/ ) has show just how However the news is not all bad
difficult it has become for for first-time buyers in Wales,
people in Wales aged 20-39 to get as the Royal Bank of Scotland has
a foothold on the housing ladder, announced that the Rhondda town
as the gap between house prices of Ferndale has been crowned the
and wages increases. most desirable investment spot
for new home buyers in the its
The study showed that young first-time buyer property index.
working households in Wales
currently earn on average
"£27,039, however the cost of a A spokesperson from The Royal
two bedroom house is almost four Bank of Scotland said, "The index
times that at "£107,864. In some reveals that for savvy house
rural areas the situation is even hunters, the most crucial aspects
worse, with house prices around determining future return on
five times the average household investment are the low house
income. The most expensive areas price to high income ratio and
according to the survey were the recent house price growth
Monmouthshire ("£147,084), rate of the area, alongside any
Cardiff ("£142,773) and the Vale regeneration prospects."
of Glamorgan ("£138,019).
Ferndale topped the chart despite starting to look brighter for
earlier this year gaining the sellers.
dubious distinction of coming
bottom in a house price league of Rightmove also declared last
1,414 Welsh and English towns month that almost 120,000 sellers
based on prices since 2000. in England and Wales cut their
asking price in the four weeks up
In the wake of the recent market to 6th August and stated that
upturn in the town, it is now this reflected that it is
boasting a large number of "for currently a buyers' market as,
sale" and "sold" signs and "There is too much unsold
looking to attract more property still available to
first-time buyers. expect anything other than a
continuation of static asking
According to The Royal Bank of prices this year."
Scotland, "Buying in an
up-and-coming property hotspot Rightmove said that with house
can help first-time buyers climb prices doubling over the last
the ladder faster to their ideal five or six years and mortgage
property or location in the rates having also recently risen,
future". the only affordable option for
some people is to rent property
Housing organization Rightmove rather than buying.
believe that with property prices
in Wales bucking the current UK Isabelle Kassam writing for
decline in house prices and Moneynet ( outstripping the rest of Britain href="http://www.moneynet.co.uk"
by more 7% and correcting a target="_blank">http://www.moneyn
previous 6% price slump, the et.co.uk ) believes that
housing market in Wales is since, "Interest rates fell
recently but mortgage lenders struggle to afford their first
have been slow to pass the property. A vicious circle has
reduction on to consumers. been created that is affecting
Borrowers who are holding out for many prospective buyers. While
an even lower fixed rate are not being able to currently
playing an anxious waiting game." afford to buy, the higher rents
are preventing the hopeful
first-time buyers from saving
The situation does not look good enough to get out of the rented
for those who are presently in accommodation trap.
rented accommodation hoping for
the climate in the housing market Mr Shipside of Rightmove
to get better, as the Royal indicated that those being hurt
Institution for Chartered most, "really is first-time
Surveyors (RICS) has revealed buyers, and there is a lot of
that rents have risen at their demand for flats. Two thirds of
fastest rate for four years. This tenants are actually under 35, so
is rubbing salt into the wounds they are the people that are
of would-be first-time buyers, as being hurt by rising house prices
tenant demand is rising on flats and rising mortgage rates."
as prospective first-time buyers
About the Author:
Richard lives in Edinburgh working for bigmouthmedia ( http://www.bigmouthmedia.com ), occasionally writing for the personal finance blog Cashzilla ( http://cashzilla.blogspot.com/ ), and frequently wears black clothing.
Source: www.isnare.com
