First-time buyers scrap purchase plans due to recession

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by Kay Murchie

A survey by the Letting Protection Service (LPS) has established that nearly half a million first-time buyers abandoned plans to purchase a home because of the current economic climate.

In the last 12 months alone, the housing market lost out on almost 500,000 first-time buyer sales because of the recession.

According to the LPS, the figures reveal for the first time the degree to which first-time buyers have been put off buying during the recession.

English Housing survey results published in September last year revealed that there were 1.7 million short hold tenancies in England and Wales – 29% of which is 493,000.

Kevin Firth, director of the LPS, comments: “These figures indicate the extent to which the property market has swung away from home ownership and towards rented property during the housing slump.

“While the full effect that this repositioning will have on the market will not be apparent for months to come; it is clear that there is now more pressure on private landlords.

“At the same time, many of these landlords are inexperienced, relatively new to the market and unsure of the risks and legislation involved. I would strongly encourage all of them to take professional advice on legislation and carry out full referencing on their tenants,” concludes Mr Firth.