Survey reveals FTB’s giving up on UK home ownership
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by Kay Mitchell
First-time buyers (FTBs) appear to be giving up on their dream of owning their home, according to a survey.
A survey by foreign exchange group, Moneycorp, found that 70% of people who do not own a property say they have scrapped plans to buy in the UK because of high prices.
In addition, the current uncertainty surrounding the economy has deterred people from buying in the UK and would considering buying overseas, where they expect to get more for their money.
One quarter of the 2,000 people surveyed said they would consider purchasing a property abroad, with the first choice being France, then Spain.
Commenting on the findings, David Kerns, private client dealing manager at foreign exchange group Moneycorp, said: “Despite turbulent economic times, our report shows that a staggering one in four first-time buyers are still considering investing in overseas property at the moment due in part to the high costs of UK housing.”
The survey reflects figures from the Council of Mortgage Lenders (CML) who last month said first-time buyer numbers are falling, despite changes to stamp duty and house price falls.
According to the Council, the 14,300 loans advanced to new entrants in April accounted for just over one third (35%) of mortgages.
This was down from 39% in March and 38% seen in the same month a year earlier.
However, the fact remains that first-time buyers still need a hefty deposit because of the credit crunch so are therefore struggling to get a foot on the property ladder.
According to the latest figures from the CML, first-time buyers put down an average deposit of 25% of their home’s value in April.
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