House hold demand in the pipe line
When the market does turn, first time buyers will re-enter the market, driven by the renewed affordability of owning over renting. With lenders cautious on loan to value ratios, there will be new types of shared ownership and shared equity schemes to be in high demand.
This will not only be amongst households which qualify for the Government’s Homebuy scheme. There will be more opportunities for private Shared Ownership schemes to meet demand from more affluent households with limited equity, they will sell there home and rent it back.
Margaret Beckett warns would-be first-time buyers not to delay in the hope of further price falls, because “when the upturn comes, there will probably be a mad rush”. She has just launched a shared equity scheme to help first-time buyers purchase Barratt homes.
Most people believe that paying rent for years is as good as throwing money down the drain, the British perception of renting isn’t going to change. Estate agents are reporting an increase in new enquiries, there is still a demand for property that isn’t going away.
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