Oct 12 2007
We seek them here, we seek them there!
No surprises to hear that first-time housebuyers are becoming another endangered species in the UK housing market both sides of the border even though house prices in Scotland continue to lag England (except Auld Reekie).
The number of people describing themselves as first-time homeowners dropped between March 2007 and September 2007, from 20% of the UK population to 16%, according to money-supermarket.com, the price comparison site. They were backed by separate figures from the Royal Institution of Chartered Surveyors (RICS) which confirmed that demand among first-time buyers seems to be dampening.
The number of new buyer inquiries fell at the fastest rate since March 2003 in September 07 and for the tenth month in a row, while house prices fell for the second successive month, according to a RICS report.
No surprises here with interest rates still on the up, house prices very high and Northern Rock scaring the hell out of jittery consumers. Typically a fall in the number of first time buyers is disastrous for the market. However, the announcement by Chancellor Darling of a fall in capital gains tax rates makes owning property even more attractive to investors who typically favour 1 and 2 bedroom properties so the market may inversely take off once again fuelled by speculation which will not be good news for the ailing labour government.
