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By Spencer Gordon, Feb 23 2016 03:00PM

According to the latest data from ONS, 20 to 34 year olds are now more likely to be living at home with parents than in the last 20 years.

There were 618,000 more young adults living with their parents in 2015 than in 1996 – 3.3 million compared with 2.7 million.

In total, nearly half of 20 to 24 year olds and a fifth of 25 to 29 year olds are currently living with parents. For 30 to 34 year olds, this figure was less than one in 10.

In comparison, the percentage of young adults owning their home decreased from 55% in 1996 to 30% in 2015 for 25 to 29 year olds; and from 68% to 46% for 30 to 34 year olds.

In 2015, 91% of householders aged 20 to 24 were living in rented accommodation.

Only 9% of 20 to 24 year old householders owned their homes either outright or with a mortgage or loan in 2015, down from 30% in 1996.

The ONS attributed the rise in adult children living at home to a rising delay in getting married and having children, increasing numbers of young adults choosing to stay in education for longer, and rising house prices and deposits.

By Spencer Gordon, Jun 4 2015 09:31AM

According to new data from the National Association of Estate Agents, a quarter (26%) of house sales were made to first time buyers in April.

It seems first time buyers (FTBs) had some good news in April, as sales to the group jumped from 22% in March to 26% of sales in April. However when looking further ahead, nine in ten (93%) agents do not see FTBs having substantial cut through in the market over the next five years. Further, over half (55%) of agents think that house prices will increase over the next five years, continuing to push FTBs out of the market.

The report also found that in the build up to the General Election, demand in April remained similar to the previous month with 344 house hunters registered per branch (343 in March), whilst supply decreased from last month, with just 43 houses available per member branch (48 in March). In addition to this, three quarters (74%) of agents do not see supply and demand levelling out over the next five years, meaning that more buyers will be squeezed out of the market.

Mark Hayward, managing director, National Association of Estate Agents (NAEA) said: “The market is notoriously tough for first time buyers; house prices continue to increase and lenders have tight and restrictive lending criteria. Whilst this month’s figures are positive and a step in the right direction, I’d like to think that with the help of 200,000 new starter homes and the Help to Buy ISA, FTBs will be given even more help to get their foot on the ladder; however these things may take time to come to fruition.”

Following the result of the General Election, nine in ten (92%) agents think the majority Conservative government is great news for the housing market and out of all the Conservatives’ pledges, three in five (60%) agents believe their plan to build 200,000 new starter homes will benefit consumers the most. Two in five (41%) estate agents believe that the Help to Buy ISA will be the most beneficial, allowing first time buyers (FTBs) to save more successfully for their first home.

By Spencer Gordon, Jun 1 2015 02:03PM

New analysis from MoneySuperMarket has found that mortgage rates for first time buyers are at a three year low.

The comparison website revealed the number of overall mortgage products available to first time buyers is currently 2,776. Thanks, in part, to the Government’s Help to Buy scheme, this figure is double the number of products available in April 2012 when there were only 1,324 first time buyer products on the market. In addition, the average rate on first time buyer mortgages has dropped by one percentage point in the last three years to 3.26 per cent.

With the average loan to value (LTV) required for first time buyers remaining flat over the last three years (79 per cent compared to 78 per cent in April 2012) , those looking to get their first foot on the ladder would need to stump up a hefty deposit of £31,500 on a £150,000 property. However, a five per cent deposit on the same property would cost £7,500 and for those in that situation there is good news.

The number of 95 per cent LTV mortgages available has increased significantly over the last three years. Spurred by a the number of Help to Buy products available, there’s 170 mortgage deals currently on the market available to those with just a five per cent deposit, an increase of 448 per cent since 2012 when only 31 products available. In addition, average rates have decreased by 1.04 percentage points to 4.72 per cent on average.

Kevin Mountford, head of banking at MoneySuperMarket commented: “The increase in the number of first time buyer mortgages, and the corresponding fall in interest rates, can only mean good news for those looking to get a foot on the ladder. Even better, borrowers who can scrape together a 10 or even 15 per cent deposit will find they are able to get their hands on more competitive deals. The introduction of the Government’s Help to Buy ISA which will see the Government provide up to £3,000 towards a first time buyer’s deposit, could also help prospective homeowners get themselves into a new LTV bracket, thus helping them secure a more competitive deal.

For anyone looking to buy their first home, it’s important not to be led by interest rates alone when comparing mortgages. Expensive fees can wipe out the potential benefit of a lower rate so it’s worth doing the sums first to ensure you really are getting a great deal. Whilst mortgage approvals were up seven per cent overall on March, this doesn’t mean that lenders’ criteria is becoming more relaxed. After the introduction of the Mortgage Market Review, borrowers not only need to have a strong credit score, they also need to prove that they can afford the mortgage they’re applying for – not only at its current rate but, if rates should rise in the future”

Finally, also think about whether you want a fixed or variable rate deal. Fixed provides security that your rate won’t change during the term of the deal. Whilst variable rates tend to be cheaper, you need to ensure that you will be able to afford your monthly repayments if and when interest rates do rise.”

By Spencer Gordon, Apr 20 2015 03:26PM

National property prices have continued on their upward trajectory across quarter one of this year. In March property prices increased 0.9% on the month and 5.6% annually to £206,726, the highest average price since April 2012.

In contrast first-time buyers are benefiting from falling prices, which peaked in November last year and have fallen 1% annually in March 2015. This is one of a number of benefits first-time buyers are experiencing, including Help to Buy, low mortgage rates, cheaper Stamp Duty tax as well as the potential for the Help to Buy ISA.

The number of new buyers and the number of new properties for sale surged in March 2015, by 21.8% and 27% respectively – a seasonal trend across the spring months. The number of new buyers is down 21.5% on an annual basis which reflects that the market in 2015 is not as busy as the exceptional 2014 market.

The number of new first-time buyers coming to market has also surged on a monthly basis, by 17.1%, whereas the volume on an annual basis has fallen significantly.

Along with a decrease in average property prices, the average first-time buyer deposit and average first-time buyer mortgage have decreased in tandem.

The average age of a first-time buyer has decreased to 31.5 years, down from 31.8 years last month.

Our latest data indicates that prospective buyers and sellers have put their ducks in a row and are entering the market in high levels this spring – undeterred by the whispers of market uncertainty. This in turn has driven up UK property prices by almost 1% in a single month and 5.6% annually.

Spencer Gordon Estate Agents Southport


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