Banks Hold Key to Homes

A GENERATION of first time buyers will be locked out of the housing market unless bankers relax stringent lending rules preventing many from securing a foot on the property ladder.

That was the warning from estate agents on Tuesday in the wake of a damning report commissioned by the Housing Federation that property ownership in Reading and the South East could fall under 70% by 2021 - its lowest since the early 1980s.

The bleak forecast, based on a report by independent researchers Oxford Economics, predicts the number of owner occupiers will fall from 72% in 2010 to 69.7% by 2021 - with expensive house prices, lack of new homes and strict lending criteria forcing

people into the private rented sector or onto social housing waiting lists.

It also predicts a 21.9% rise in house prices across the region in the next five years - bringing the average cost of a house in Reading from £193,339 (based on the July 2011 Land Registry House Price) to £235,680.

James May, Director of Prospect Estate Agency in King Street, Reading comments; 'Although there is certainly a large decrease in first time buyers we are now seeing some come back to the market. 

"To realistically bring all these buyers back to the market the lenders need to be more flexible with their lending terms. Buyers simply can't afford a 20-30% deposit to acheive a good rate.

"Until we see relaxation from the banks and building society's I can't see an influx of first time buyers coming back to the market, which inevitably will effect the amount of home owners with Reading and all across the UK.

"We recommend anyone with a view of purchasing a property, whether it be your first or fifth time buying, speak with a credited financial advisor. The banks are changing criterias very quickly and you may think you can't afford to buy when you actually can! Also speaking with a professional will ensure you get the best possible rate available."

If you would like more information on this article, or would like to speak with a credited financial advisor then contact us today on 0118 955 9712.

Source - Reading Chronicle