House Prices, Cash and First Time Buyers
House Prices, Cash and First Time Buyers enquiry form.Our opinion is that the principal cause of the current recession was the reckless lending by many banks and other mortgage lenders which fuelled massive increases in house prices. Under the culture which existed Buyers were encouraged to think that prices would always go up. Many people refused to believe that there could be a negative side to property the perception was to purchase at any price as the market would always go up.
If banks had exercised caution and requested decent deposits then many buyers (who are now trapped in negative equity) would never have entered the market.
As risky lending in America started to go wrong and the excessive lending to sub prime borrowers was realised it also became apparent that similar sub prime lending was prevalent in the UK.
It was clear that the result of risky lending was going to cause losses to the banks and that the outcome of widespread excessive lending over a number of years was going to cause severe losses.
The large fall in property values reflects that the previous confidence has now evaporated, there are a few people with deposits and mortgage lending is only available to a much smaller market of buyers who can demonstrate a reliable financial profile.
Valuers have to value the properties with caution and can no longer rely on the benefit of a confident market place.
House prices have fallen and our experience is that cash buyers are now purchasing. We would like to see the fall in prices reach the bottom of the cycle and hold steady. This would then signify an opportunity for confidence to re emerge which could fuel renewed activity.
No one can say if we have reached that point and with more and more job losses there is a risk of further falls in the market as people without jobs and income cannot be property purchasers.
There are undoubtedly opportunities for cash buyers and good first time buyers and we can offer some very high value conveyancing deals for those in this position.
The importance of a thriving property market in the UK cannot be underestimated as it benefits so many other business, builders and merchants, DIY stores and furniture shops and without it business and share values are depressed.
It must be down to individual choice to assess whether house prices have yet reached the ultimate low point but there is a little evidence that more mortgages may shortly become available and we are seeing transactions moving along albeit at a much reduced level. This may be an excellent time to purchase particularly for first time buyers who can meet a satisfactory financial profile.
If you are in this position please contact us we can assist you and point you in the right direction and give you a high value conveyancing quotation.
Please contact us we will be delighted to hear from you.
