LONDON - A report commissioned by the Woolwich says that first-time homebuyers will have it easy in the property market by 2025 despite house prices soaring to unprecedented levels.
In the next 20 years, the cost of an average home is all set to hit £333,000, a rise of nearly 112 percent. However, the fact that smaller starter homes would be built means that first time buyers need not worry about the future. They will also be aided by the fact that the earnings growth is predicted to surpass the property market growth with an increase of 140 percent. This means that first time buyers can afford to put down substantial sums for their homes.
"Increased availability and affordability of houses mean that things are looking up for first-time buyers, but this will come at a price. At the other end of the scale, we expect to see generations of families moving into larger properties together to maximize space. This may have added benefits in terms of childcare and nursing costs for elderly relatives," said Andy Gray, head of mortgages at the Woolwich.
The report also said that first time buyers in the South could face a tough time as only 15 percent of the young crowd would able to afford buying property. But first time buyers in the North East, North West, West Midlands, Yorkshire and Humberside would be able to afford most properties on the market, the report said.
It added that homes in 2025 would be split between small dwellings for first time buyers and Victorian-style mansions for families, who will choose to stay together to get more space. However, the report warns that gardens could end up being a thing of the past, "Whilst the future looks sunnier for first time buyers, it's increasingly looking like they won't have a garden to enjoy it in," Mr. Gray commented.
Posted
on : Fri, 26 Aug 2005 19:40 GMT | Mortgages News
By : Pippa Fielding
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