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First-time buyers losing interest in city living

City living is losing its appeal among first-time buyers, with the vast majority now preferring more subdued locations, Trussle has found.

As it stands just 29% of first-time buyers plan to buy in a city, compared to 53% in a suburb.

Miles Robinson, head of mortgages at online mortgage broker Trussle, said: “The pandemic has increased the financial pressure many first-time buyers were already feeling, as well as creating a seismic shift in what people expect from their home.

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“As a result, financial pressures and rising house prices, alongside a desire for more outdoor space, means demand in more affordable rural locations is currently outpacing that for urban destinations.

“But lenders are starting to return to the market with higher LTV products, which could make more expensive homes in the city more accessible again.

“And, we may see renewed interest in city living once the vaccine has been rolled out and things begin to return to normality.

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“As such, only time will tell if the current lust for country properties is a long-term trend or more of a spontaneous response.”

Higher house prices in urban locations are likely to play a huge factor in this trend, with 65% saying it’s ‘impossible’ to get on the housing ladder.

The research found that the average budget for a first home was £174,266.


Source: Property Wire

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Surveyors forecast fall in house prices as house buyers decline

A renewed decline in the number of house buyers is piling further pressure on London’s strained property market, according to a closely followed survey out today.

The Royal Institution of Chartered Surveyors (Rics) has said there was “caution” from buyers last month, as Bank of England governor Mark Carney reportedly warned prices could drop 35 per cent in the case of a no-deal Brexit.

Roughly 47 per cent more surveyors in London said they expected a fall rather than a rise in house prices in the next three months.

Brian Murphy, head of lending for Mortgage Advice Bureau, said: “As the report is based on September, it was perhaps inevitable that the leaked comments from Mark Carney with regards to the potential impact of a ‘disorderly Brexit’ would be the main focus of this month’s commentary. Whilst Mr Carney’s remarks were perhaps somewhat taken out of context – he was of course, asked to provide his views on a range of potential scenarios, not just ‘worst case’ – given the widespread coverage they received, Rics members appear to be suggesting that the impact in some areas of the country was noticeable.”

Rics also reported that roughly 51 per cent more surveyors in London saw a decrease rather than increase in house prices across the UK over the last three months – marking a significantly sharper drop than anywhere else in the country.

Among the biggest victims of London’s housing slowdown are prime expensive properties in Central London, which is likely to remain stagnant in the wake of Theresa may’s latest promise to slap a stamp duty surcharge on foreign buyers.

The survey comes a day after Telford Homes boss Jon Di Stefano told City A.M. that the Aim-listed housebuilder was expecting flat house sales within London’s high-end market over the next year, as negativity Brexit commentary weighs on buyers’ fears.

The Rics residential report also found that the volume of properties being put up for sale or rented out continued to tumble last month.

Source: City A.M.

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Property market swings back in favour of sellers as supply slides again

The property market may have swung back in favour of sellers during April, NAEA Propertymark claims.

The trade body’s latest Housing Report found demand from prospective buyers increased from 308 to 337 between March and April, while supply was down from 40 to 33 homes per branch over the same period.

This is a departure from March when the number of house-hunters on estate agents’ books fell from 309 to 308, while supply per branch hit a five-month high of 40.

The number of properties available per branch increased from 35 in February to 40 in March – the highest since October last year.

The number of sales to first-time buyers remained the same between March and April at eight per branch, while the percentage of sales to this cohort dipped to 24% from 25% at the same time last year.

Mark Hayward, chief executive of NAEA Propertymark, said: “Last month our findings indicated that we were entering what looked like a buyers’ market, but this month, the dial has swung back in the favour of sellers.

“With demand on the up, and the supply of available homes falling once again, buyers will find themselves facing stiff competition.

“This is particularly difficult for first-time buyers who traditionally have less bargaining power on price, so will struggle to enter bidding wars with second or third steppers.

“The Government is working to improve the house buying and selling process, which is music to our ears, but until more homes are built and supply catches up with demand, the process will remain difficult.”

Source: Property Industry Eye