At Manse & Garret, we are always looking out for information that can affect our Clients.  Halifax recently claimed that it now costs (on average) £100 less per month to buy a property, than it does to rent the same one, which may have an impact on our buy-to-let Client’s.  In the last year, there has also been a rise in the number of first-time buyers successfully securing a mortgage.

First-time buyers have been able to climb onto the property ladder due to the re-availability of 95% mortgages and a number of schemes, such as FirstBuy, Lend a Hand and the Save to Buy Scheme launched by Nationwide.

At first glance, these schemes seem to be just what is needed for ‘first-timers’ to climb onto the bottom rung of the property ladder.  However, regardless of whether someone has spent years saving up for a 25% deposit, has a generous Aunt willing to put money aside, or manages to get backing from their Local Authority, this still does not guarantee that the mortgage application will be successful.

For a start, a bank or building society will only lend four times the amount of an applicant’s wage.  For those earning the minimum wage (roughly £12,600 per year) the amount a mortgage provider would lend is £50,400.  The average annual salary in the UK is around £26,200, which would generate a loan of £104,800.  This means that those earning the average salary would (at most) be able to purchase a 2 bedroom property in London – but only in areas such as Thamesmead, Abbey Wood or East Ham.  Those on the minimum wage would be able to afford a garage in Prime Central London, a one bedroom houseboat, or a share in a new build property, (which also works out more expensive per month than buying outright).

Realistically, unless you are fortunate enough to be able to purchase property outright, or to earn at least the average UK wage, the chance of owning your first property seems to be slim-to-non-existent.  Whilst there has been a rise in the number of first-time buyers purchasing their first property, I suspect that the proportion of first-time buyers unable to buy is much higher than the proportion who are.  The mortgage schemes available, for some, are most definitely a mirage, as they lack the substance necessary to be tangible.

Fortunately for top-end Buyer’s Agents like us, our first-time buyers are either able to meet the requirements for a residential mortgage, or have the funds necessary to purchase a property outright.  We are well placed to help them secure their first home in the right area and at the right price, as we know how property transactions work in the UK.  If you are looking for your first (or second!) property in London or Brighton, give us a call today to see how we can help you with your search, as we are officially the best Property Finders in London.

Technorati Tags: First time buyers, Mortgage Lending, mortgage schemes, mortgages, property, property market news

Tags: First time buyers, Mortgage Lending, mortgage schemes, mortgages, property, property market news

Musings of a London Property Search Agent

Of the property searches we have undertaken so far this year, all have involved an off-market property search, because supply is so low in all sectors of the market.  In Prime Central London, the situation is particularly acute, with many properties sitting around for ages and the gems being snapped up, in some cases before vendors have selected an estate agent and signed up.  And you know what?  That suits us down to the ground! 

We can really display our talents when there is little stock.  We advertise, phone all our contacts, speak to all the home owners we know with suitable property and inevitably an estate agent will be able to bring a reluctant vendor to market and we will find a few vendors keen to talk since we have serious buyers and before we know it, it’s all systems go.

Interestingly, advertising hasn’t borne fruit this year.  It always impresses our Clients, but we’ve not had a good response rate this year at all when advertising for property.

I digress.   Anyway, regular readers will know that we have seen gazumping coming back to the market and that as Property Search Agents who know what we are doing and what vendors will accept – we have also been very critical of predominantly overseas buyers who confuse property deflation with the collapse of sterling against some currencies, and pay far more than they would if they were buying through us.    It seems Knight Frank, who act for vendors are also seeing a return to gazumping and are yet another estate agent reporting rising prices achieved in the capital in May and a bumper crop of sales agreed.  Knight Frank have house prices in prime Central London up 1.6% in May, following a rise of 0.4% in April and we would expect other house price indices to reflect similar gains.

Another piece of anecdotal good news is the increase of first time buyers and buy-to-letters  to the market.. Enquiries are up tenfold on a year ago and with the bargains on offer we are really not surprised – for those who can get finance that is anyone with a deposit of 10% or more and a good credit record, it’s a great time to buy. 

So are the green shoots starting to flower?  It’s a bit close to call but with top accountants and business people predicting positive GDP from Q4 this year and those who lose their jobs often finding alternative work within a few weeks, fingers crossed normality is not far round the corner.

This London Property Search Agent has her fingers crossed!

Technorati Tags: green shoots, house prices rising, London House Prices, London property prices, London Property Search Agent, property

Tags: green shoots, house prices rising, London House Prices, London property prices, London Property Search Agent, property

Musings of a London Property Search Agent

Hometrack published the results of their March House Price Survey today, the results of which support the murmurs of green shoots.

Buyer registrations are up a further 8.5% year on year after a high of 17.1% in February; sales agreed are up 18.6 % following a year on year increase of 35.9% in February; the average time on the market has dropped to 11.3 weeks and on average 88.8% of the asking price is being achieved.

The best news is that buyer registrations and sales volumes are up, but the double digit increases over the last few months is less impactful than first appears, given the low base.

House prices which are down 10.3% year on year according to Hometrack continue to slide, but the momentum appears to be lessening, with a month on month decline of 0.6% in March.

All great news, but sadly the volumes are too small for comfort.  In our capacity as Buyers Agents, increasingly we are talking to people who just want to get on with their lives, rather than wait for the market to recover before moving on.  Perhaps I am feeling particularly gloomy today, but I don’t think the market is exhibiting much more than pent up frustration after a year of very little movement.  For those who want to  move in the next two years, as long as you  buy well, for the right price and make a good buying decision, now is as good a time as any, but the price agreed will be key, as the market is likely to drop further albeit more slowly than in recent months.  Call this London Property Search Agent for sound advice on prices.

Technorati Tags: Average London house prices, Hometrack, House Prices, London Property Buyers Agents, London Property Search Agent, property, real estate

Tags: Average London house prices, Hometrack, House Prices, London Property Buyers Agents, London Property Search Agent, property, real estate