First time buyer still "priced out"
Whichever way he did the sums
Daniel still felt there could be way to
buy a house more
reasonably than continue renting.
Lenders restrictions are still making it easier to rent than to buy despite price drops.
A fairer deal on mortgage rates would bring 95% of the country within the reach of first time buyers, it has been claimed.
Despite house prices having fallen 16% over the last twelve months it is still cheaper for a first time buyer to rent a home rather than buy one in most parts of Britain according to the latest research from property portal, Propertyfinder.com.
But it is high mortgage rates levied on first time buyers which are to blame, not high house prices, states Propertyfinder.
The company analysed sale prices and rents of 110,000 two bedroom properties currently on the market and compared the cost of renting and buying around the UK.
If first time buyers were able to access the best borrowing rates in the market, which the banks are restricting to those with 40% deposits, it would be cheaper to buy a two bedroom home rather than rent one in 95% of districts in the country.
Jonathan Waters, Managing Director of Jonathan Waters Estate Agents in Ipswich, commented that buying has definitely become a cheaper option for those able to make a down payment.
“What could be better than living in your own home and enjoying your own tasteful décor whilst capitalising on current low prices for long term investment?
“It really is the case there has never been a better time to snap up a bargain. I myself have both rented and owned property and there is definitely nothing quite like the latter. With renting it never seems really yours.”
Mr Waters’ thoughts have clearly been echoed by a number of first time buyers in the Ipswich area “We have seen a considerable resurgence in first time buyers looking to purchase since our return from the Christmas and New Year break. Clearly they have been waiting on the fence for a while and those with sufficient deposits to enable them to get a mortgage deal are finding excellent value for money in both the prices of the property and the mortgage interest rates.
Jonathan continued “We have a number of excellent first time buyers at the moment. One of our best is a one bedroom flat in east Ipswich for £65,000. For details on this and any other property, first time buyer or otherwise, please contact Jonathan Waters Estate Agents.”
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