House Prices Rise Modestly in May

House prices rose by 0.3 percent in May, the latest index from Nationwide reveals.

The three month on three month measure showed prices rose by 0.6 percent, meaning the price of a typical home in May is 1.2 percent lower than a year ago.

ìOverall, the modest pace of house price growth in May suggests that the property market is continuing to mirror the lacklustre trends evident in the wider economy,î Robert Gardner, Nationwideís Chief Economist said.

Research by Clydesdale and Yorkshire Banks meanwhile reveals first time buyers are struggling to meet the cost of a deposit, as 84 percent admit to relying on parental support.

Since 2005, the number of first time buyers relying on the bank of mum and dad to buy their own home has more than doubled, when just 38 percent of buyers six years ago admitted this.

ìIt is becoming increasingly commonplace for first time buyers to require financial help from their parents when buying their first home,î said Steve Reid, Clydesdale Bank retail director.

For 53 percent of first time buyers, the high cost of homes is the biggest barrier to them getting on the property ladder and not the availability of credit, a report by Shelter revealed.

Furthermore, 79 percent of first time buyers think banks and building societies lent irresponsibly before the credit crunch, and 38 percent still do not think they can be trusted. Twenty eight percent said they had been offered a larger mortgage than they had asked for.

Further research by the Banks revealed first time buyers are relying on friends and partners to obtain a mortgage too, with 47 percent of properties bought by first time buyers purchased with a joint income to enable them to afford it.

Leave a Reply

Your email address will not be published. Required fields are marked *