First time home buyers in London and South East England are facing higher purchase prices than other parts of the country. Because of this, many of these potential buyers are approaching their parents for loans to help fund these purchases. This trend may lessen as mortages begin to offer competitive rates and more properties flood the market. As transportation improves, first time buyers can also look to buy outside the London area without needing to borrow from family.
Key Takeaways:
- First time homebuyers in London are depending on help from their parents so that they can afford their own places to live.
- The prices of homes in London are actually on a slight decline, which could be beneficial to homebuyers who are feeling the strain.
- Homebuyers are finding that they may not be able to get everything they want, and might have to be flexible when it comes to location of a home or the condition.
“In a recent consumer poll by Mortgage Advice Bureau, first time buyers currently saving to purchase in London and the South East said they expected to pay in excess of £357,000 for their first property purchase, compared with a national average cost of a first time buyer home of £208,494.”