o matter what social gone down by a staggering 351 per
occasion you find yourself cent in the last 12 years.
at this week, sooner or
The reality is that
later someone's going to bring up affordability problems are at an
the issue of house prices. all time high, affecting
It seems to be a national countrywide property. A couple
obsession. When they were going who are on a low wage – known as
up, those who already had a house lower quartile where the
were rubbing their hands in glee household income totals £26,595
at the thought of all the money after tax – currently have to
they had already made, while spend an average of 40% of their
those who hadn't yet bought household income, just to pay the
looked on in despair.
mortgage.
And now prices for countrywide
This is just under the record
property are levelling out a of 47.8% which was set in the
little, homeowners are a bit less first quarter of 1991, but still
smug… while the poor first time higher than is comfortable for
buyers just keep scanning local many families.
newspapers and property portals,
And the situation is worse if
in the vain hope of one day you are a first time buyer. To
spotting a cheap property.
get on the property ladder, a
The reality is that even with lower quartile couple will have
prices slowing down, property is to save up to 104% of their joint
incredible expensive in the take home pay.
UK.
To make that figure seem more
A new piece of research real, that means saving just
released in the last week by under £28,000 for the up front
RICS, the Royal Institution of costs of buying a house. That
Chartered Surveyors, shows that includes the deposit, fees and
the affordability of property has stamp duty.
Of course, this is a national
So what effect does this have
piece of research, and figures on countrywide property
will vary across countrywide repossessions? As you would
property depending on the local expect, RICS expects them to
markets. But it still makes scary continue to rise. It believes
reading, especially if you are that throughout 2008, 123 homes a
looking for your first home and day will be taken back by the
only have a few thousand pounds lender.
put aside.
There is one piece of relief
Let's take a closer look at on the horizon that could have a
the RICS figures for countrywide positive effect on mortgage
property across the UK. payments. It's looking likely
Unsurprisingly, London is still that the Bank of England will
the hardest place for a low lower interest rates later this
income couple to buy a house. And week.
when you've bought your home, you
In fact it's virtually
have to spend just over 50 per guaranteed. The Monetary Policy
cent of your monthly income Committee that looks at all the
paying the mortgage, according to economic factors each month is
the figures.
due to meet on Thursday.
The situation isn't much
It made a cut in December. And
better in the south east and a Reuters poll of 60 economists
south west, where couples still last week predicted another cut
have to save more than 100% of being "almost certain" this week.
their combined take home pay to It's thought the cuts are
buy property.
necessary to stop an economic
In the north east the slowdown from turning into a
percentage of salary needed to proper recession.
pay the mortgage each month drops
Whether you're trying to get
down to 29%.
your first home or just pay the
mortgage on your existing one, "728x90_as";
that's sure to be a relief.
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Article Tags: home, house, property
