Rising living costs create difficulties for first-time buyers
People looking to place belongings in self storage and move to a new home may find it difficult to get on the housing ladder due to the rising cost of living.
This is according to the new Ability to Buy Index from Royal Bank of Scotland (RBS), which found the current market situation offers a mixed picture for those looking to buy their first property.
The research found it is currently harder to get on to the property ladder than during the 2009 recession, despite signs the sector is beginning to improve.
It noted average mortgage payments have fallen to their lowest level since 2003, with this expense taking up 52 per cent of discretionary income in the first quarter of 2011.
At the peak of the housing market in 2007, this figure was 84 per cent, the company observed.
However, although affordability for those who are able to secure a mortgage is improving, it remains a tough market for individuals who are seeking finance.
RBS stated this is partly down to low interest rates, modest earnings growth and squeezed incomes, which mean it is taking people a long time to save up for a deposit, although this situation has also become better since 2007.
UK consumer economist at RBS Fionnuala Earley said the results of the first Ability to Buy Index show "higher living costs are making it more challenging for first-time buyers to enter the market, despite the lowest mortgage payments in almost a decade".
However, she added it is not all bad news, as falling inflation and the continued low interest rates should make it easier for first-time buyers to enter the market.
Last week, it was also revealed by Bank of Scotland the cost of the moving process increased from £4,125 in 2001 to £6,972 last year, due to stamp duty and rising fees for estate agents.
Posted on Wednesday, 01 February 2012 under ContentPlus Self Storage
Comments
Subscribe to comments RSS feed for this article
No comments have been posted for this article...
Add Comment
Write a comment about
Rising living costs create difficulties for first-time buyers
Comments support gravatars
|