State of the UK Housing Market. Age Of First Time Buyer Increases. Rental Market Strong
A seminar held by the Royal Institution of Chartered Surveyors confirmed that job loss in the public sector over the coming 12-24 months is likely to have a negative effect on the UK housing market, and that interest rates will probably rise to around 1% at the end of 2011 and 2% by the end of 2012. The seminar also discussed the benefits of social housing in conjunction with mixed developments.
The seminar heard that the average age of today’s first time buyer compared with those in 1975 has increased by 10 years from 27 to 37 and the average deposit has increased approximately from £8,500 to £29,000 — although the amount of time taken to save a deposit is about the same now as it was in 1975. The ‘Bank of Mum and Dad’ is not a new phenomenon.
The RICS sees the rental market as strong and likely to remain so. And there are still opportunities in the housing market despite the doom and gloom being expressed in the media. Our longterm view is that prices in many areas will rise again.