First time buyers are paying the price for Britains soaring housing market.
With latest figures revealing that the number of first time buyers has collapsed as prices escalate, Britains housebuilders are making a determined effort to help.
A recent study reveals that first time buyers are now unable to afford homes in 92% of British towns. As a result, just 361,000 accounting for 29% of home purchases managed to get on the housing ladder last year compared to 532,000 in 2002. The age of the average first time buyer has risen to 34 as younger people give up the struggle to buy their own home.
In response, the housebuilding industry has promised to address the problem. Some of the countrys leading firms are concentrating on building smaller, lower-priced homes to tackle the problems that first time buyers face.
Major housebuilding firms Bovis Homes and Country & Metropolitan have both confirmed that they are massively increasing production of lower-priced homes that cater specifically for first time buyers. Both aim to boost production of lower-cost homes by 25% this year. Other major firms, including Barratt and Crest Nicholson, have also greatly increased production of affordable homes.
A spokesman for the New Homes Marketing Board, which oversees New Homes Week (7-11 March 2005), said: The massive increase in house prices over the past few years has been driven by a number of factors, notably low interest rates and a buoyant economy. However, the root cause of long term house price rises has been the restrictions on new housebuilding, leading to demand far outstripping supply. House prices have increased by almost 5,000% over the past 40 years an average of more than 10% a year whilst annual retail price inflation has been averaging just over 6% over the same period.
Housebuilders recognise the very real difficulties that young people and first time buyers are facing and are doing their utmost to help by boosting production of lower priced homes. In addition there are many incentives that help first time buyers. These range from having legal fees or stamp duty paid to free fixtures and fittings and generous price discounts.
New Homes Week is an ideal opportunity for first time buyers to check available offers.