Rising Prices For London Houses Impacts First-Time Home Buyers

(Newswire.net — April 4, 2014) Bournemouth, DORSET — 

London is one of the most desired cities in the world to live in.

With its popularity and high status it has attracted a large number of wealthy people who have invested in buying property which has driven up prices in the surrounding areas and made it out of reach of Londoners.

Foreign-born buyers made 69 percent of central London new- home purchases in the two years to June, with 28 per cent living outside the UK, broker Knight Frank said in October.

London house prices increased 18 per cent in the first quarter from a year earlier, the most since 2003, Nationwide Building Society said on April 2.

With much of the new developments such as apartments being built in the city, Londoners argue that only the wealthy including foreign investors can buy them.

Luxury-home developers, which often sell 30 percent of apartments abroad to finance construction, plan to build more than  20,000 properties in the capital with a value of about 50 billion pounds in the next decade, Mark Farmer, head of residential property at EC Harris, said in a November report.

Availability will not have an affect if prices keep rising.

According to Adam Haycroft, a 29 year old copy writer living in Hornsey, North London, “We’ve cut things as hard as we can; we’re sharing a flat, we’re sharing a room,” he said in an interview.

“Even with that, we save about £1,000 a month and every time we reach what we think is a milestone, we look at the prices in London and realize we just can’t get close to buying anything.

James Denselow, Labour councillor for Queen’s Park, said he is struggling to buy a property in Brent.

He told the Times: “I grew up in Queen’s Park and it is amazing that houses in the area that sold for £155,000 in 1990 are now fetching in excess of £1.4m.

“However as first time buyers my girlfriend and I are struggling to find affordable housing in the ward and face the prospect of being long term members of Generation Rent.”

With so many people wanting to get on the property ladder in London, Forex Elite Investments Ltd believe they have the solution for people to accumulate the resources they need to buy a home in London with their exclusive investment offer.

Click to find out how you can afford to buy a house in London.

 

Sources:

http://www.bbc.co.uk/news/uk-england-manchester-26864880

http://www.smh.com.au/business/world-business/struggling-london-home-buyers-blame-foreigners-for-price-surge-20140404- 362my.html

http://www.independent.co.uk/property/property-news-update-who-is-the-average-first-time-buyer-9228335.html

http://www.kilburntimes.co.uk/news/brent_witnesses_the_highest_hike_in_house_prices_in_london_1_3520425

http://en.wikipedia.org/wiki/Home