Reports that Britain is on the cusp of a property boom are short-sighted, a leading expert has claimed.
In fact, property expert Jonathan Rolande, the founder of House Buy Fast, says there is a distinct lack of buyers across the market .
He said: “If the latest news headlines are to be believed then we are in the middle of a property boom. In fact, every bit of news in the property world lately should have estate agents dancing in the streets.
“But despite all this so-called good news, the reality is that the flood of buyers are nowhere to be found.
“If they can even stomach today’s prices, first-timers are skipping right over flats and heading straight for houses, leaving a glut of apartments gathering dust on Rightmove. As for the buy-to-let crowd this is all but extinct, decimated by tax changes and regulatory headaches.
“Banks, meanwhile, are playing it cool with rate cuts, hardly passing down the discounts as fast as you’d hope. So it is hardly a boom.”
Outlining what he thinks is really going on, Mr Rolande continued: “We’re seeing the divide between those who own property and those who don’t. It’s the have-homes and the have-nots. And this crisis is squarely aimed at first-time buyers. Investors aren’t swooping in any more, so the whole sector’s feeling the pinch, particularly those sticky flats.
Want to see how deep the problem goes? In 1995, nearly a million people bought their first homes. By 2015, that figure was down to 650,000. Today? We’re looking at just 300,000. And keep in mind, the population’s ballooned by 10 million since then. Back in ‘95, only 22% of buyers had to rely on family money. Now, it’s 50%, and the amount of cash they’re getting from mum and dad has skyrocketed.
The average age of first-time buyers is up. In the ‘90s, a healthy 21% of buyers were under 24. Today, that’s dwindled to a meagre 7%.
So, the demographic time bomb has gone off. Older buyers, flush with family funds, are forking out more than ever. Meanwhile, the rest? They’re watching from the sidelines, priced out of a market they’ve got no hope of joining.
And that’s why, for most agents, despite all the good Press, business isn’t exactly booming.
Until we resolve this generational divide and financial unfairness, prices will go up, and sales will happen – but don’t hold your breath for a return to the bustling volumes of yesteryear. For many in the industry, that’s not just a concern. It’s a crisis.”
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