Categorized | International

First Time Home Buyers Drop in the UK

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The number of first time homebuyers in the United Kingdom hit a new yearly low during the past month. The number of first time buyers fell to just sixteen percent of overall sales.

That percentage of first time homebuyers is the lowest it has been since December of 2008, when it was just ten percent. Most real estate analysts have expected the drop in percentage, as the looming European debt crisis has led many potential first time homebuyers to reconsider buying. Aside from the prime real estate market, the rest of the residential real estate sectors will likely experience declines in the next year.

In an effort to improve the housing market in the United Kingdom, the government plans to address the recent declines, as well as propose a strategy to encourage first time homebuyers to enter the market. Analysts are not so sure, however, that a government policy could correct the recent declines. Mortgage approvals have increased in the country for first-time homebuyers, but many continue to hold off on making a purchase.

Analysts believe that substantial incentives would have to be offered to provide for any kind of improvement in the housing market in the United Kingdom. A stronger guarantee would also be needed, particularly for those not interested in building a new home.

The struggles that the United Kingdom is facing with first time homebuyers is one that is shared around the globe. The percentage of first time homebuyers has also declined sharply in the United States, and there is no clear indication as to when things will improve.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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