Supply of homes slipping?
The number of UK applications to build new homes was less in May 2004 than in the previous May, according to the National House-Building Council (NHBC). Approximately 14,600 applications were made in the public and private sectors, and while private sector starts were down by four per cent on the May 2003 statistics, housing association starts picked up, with a 31 per cent increase on May last year.
Imtiaz Farookhi, chief executive of NHBC, says: ‘Despite a decrease in May in the number of applications to start new homes, NHBC statistics show that the number of registrations so far this year are close to the level of last year. Furthermore the average number of new homes sold each day in April and May show a substantial increase on the same months last year, indicating that there continues to be a demand for new homes.’
An average of 579 new homes were sold each day during May 2004, a 16 per cent increase on May 2003.
For love or money
Almost two-thirds of first-time buyers will be buying their first property with their partner, despite the fact that fewer than half of them cite their reason for buying as being so they can live together.
The findings from Alliance & Leicester Mortgages’ first-time buyer research show that because property prices are more and more prohibitive for first-time buyers, young people are increasingly finding practical ways on to the property ladder. Fewer than one-quarter (24 per cent) of first-time buyers stated that they are able to foot the cost of their first purchase alone, so 57 per cent are choosing to share the financial commitment by buying with their partner instead.
When it comes to funding the deposit, 42 per cent are relying on their savings, which leaves over half of first-time buyers seeking financial help from elsewhere. Almost one-quarter (24 per cent) will be opting for a 100 per cent mortgage, making a deposit unnecessary, while 18 per cent will be asking their parents to help foot the bill.
According to Paul Cooper, head of mortgages at Alliance & Leicester, ‘First-time buyers are facing increasing financial challenges as house prices continue to rise. Our latest findings show that they are being forced to find practical ways to work through these challenges, such as buying with their partner, relying on their parents to fund the deposit or looking at a 100 per cent mortgage.’