Desperate Home Owners Slash Prices by Nearly £20,000

Desperate home owners across the UK are drastically reducing the prices of their houses in an effort to entice buyers. On average people trying to sell their homes are knocking off 7.5% off the price, equating to just under £20,000 on average. This amounts to over 2 and half billion pounds being wiped off house prices across the country.

 The city where there has been largest reductions on house prices is Glasgow, where 9% is being taken off the listed price. The town of Chelmsford in the South has the lowest reductions at 6%.

 House prices are not expected to increase at all during 2012 and economists predict the market will remain depressed and prices could fall a further 5%. With rising unemployment and fears of the economy and the Euro zone the property market is suffering badly and people are struggling to sell their houses and so opting to slash the prices.

 It is thought that 4 people out of every ten trying to sell a property in the UK have reduced their property price. Buyers are few and far between and even those looking to buy, can't as they need to sell their own property or are in negative equity and so renting will be the only option.

The number of first time buyers has also drastically reduced so the bottom of the housing ladder is stagnant. New home buyers cannot collect the large deposits required or meet the stringent borrowing conditions required for mortgages.

Visit Whathouse.co.uk Property portal for free independent advice on selling your house, buying a new house and acquiring a mortgage.

Homeowners Reduce House Prices by Record Amounts

Across the UK, four out of ten house sellers are reducing the price of their houses by record amounts in an attempt to get a sale. On average home owners trying to sell are reducing the price of their property by just under £20,000. This works out on average at around 7.5% of the average house value.

These desperate reductions mean that two and half billion pounds have been knocked off house prices in the last few weeks as sellers urgently tried to entice buyers and achieve a sale.

Glasgow, in Scotland, tops the list of towns and cities where prices have been reduced the most. In Glasgow sellers are slashing their house prices by 9%. The smallest house price reduction on average was in Chelmsford in the south of England where sellers were only knocking around 6% off their prices.

Houses prices continue to fall nationally in any case with prices dropping nearly a percent in the last quarter of 2011. Even a slight increase in prices at the start of 2012 did not do much to raise hopes and economists predict the market will remain stagnant and depressed. Prices are expected to fall a further 5% in 2012 due to low wages, rising unemployment and concerns over the economic climate.

Although there was a slight rise in prices over the month of January, economists predict that the market will remain depressed.

If you require information on available mortgages then visit the website Whathouse.co.uk for free independent advice on mortgages and house sales and moving house.

Mortgage

Eight out of 10 first-time buyers getting loans from the bank of Mum and Dad. A massive 84% of first-time buyers under 30 need a loan from their parents, the highest number ever recorded by the Council of mortgage Lenders. The number has more than doubled from those getting help in 2005, when only 38% needed money from their parents.

More than eight out of 10 first-time buyers can only get on the property ladder by getting a loan or cash handout from their parents. Many banks are demanding massive deposits of up to 40% to get a decent mortgage rate and with such stringent borrowing conditions turning to Mum and Dad is the only option. 

Banks are attempting to reduce the number of buyers defaulting on mortgages and foreclosures, but with the downturn in the economic climate and rising unemployment more than 100 people a day are still losing their homes.

The dream of owning a home is now just that - a dream for many. A large number of would-be first time buyers are opting to rent instead and many young couples are delaying getting married or starting a family until they can afford a home, many years down the line.

The average deposit for a first time buyer is now £34,000, compared to only £13,000 back in August 2007.

The report is a fresh blow for first-time buyers who were hoping to benefit from the recent falls in house prices but still cannot afford a house, deposit house prices being at their lowest for a long time. And economists have predicted that prices could fall a further 20 per cent unless confidence in the economy picks up.

The number of first time buyers in August 2007 when the credit crunch officially began was just under 35,000. Now it stands at 19,400.

If you need help with mortgages then go along to Whathouse.co.uk Property portal for free independent advice from mortgage advisers.

Three Quarters of First-Time Buyers Need Help from Their Parents

New reports show that 8 out of 10 first time buyers have to turn to their parents for help getting on the property ladder because banks and building societies will no longer give them a mortgage. It is now virtually impossible for anyone with a dream of buying their own home to do so without a loan from their parents or friends.

A survey showed that during 2011 84% of first time buyers under the age of thirty were loaned or given money from their parents to fund the deposit on a property. The Council of mortgage Lenders says this is the higher ever recorded figure on record and is more than double the number reported back in 2005, when only 38% of first-time buyers required financial help from their parents.

Without financial support from their family first time buyers hardly stand a chance of getting on the property ladder. Banks and Building Societies have tightened their lending criteria and to secure the best mortgage rates you now require a massive 40% deposit, compared with the usual 10% deposit. The average deposit needed to buy a starter home has increased from £13,000 in August 2007 when the credit crisis officially began to £34,000 in May 2012. Banks are trying to decrease the number of borrowers defaulting on mortgages and decrease the number of repossessions but in the process are pushing first time buyers out of the market.

Other scary statistics state that rising unemployment and the economic downturn means more than 100 people a day are being evicted from their homes.

First time buyers were hoping to benefit from lower property prices but with difficulties raising deposits and getting mortgages this is not the case and often these first time buyers are delaying buying a first home until they have saved a substantial deposit. And with many young couples waiting to get married and have children until they can own their own home it is having a knock on effect on family life.

If you require information on mortgages then visit Whathouse.co.uk Property portal for free independent advice from specialists in the field.