With house prices around 25% lower than recent peaks, now is becoming a good time to get on the property ladder.
The problem is that despite the house price falls, UK house prices still remain relatively high. However, given shortage of supply in UK, it would be inadvisable to wait for property prices to fall significantly more. – It might simply never happen.
These are some tips for Getting on the Property Ladder
Saving Discipline.
More tips for saving for your first mortgage deposit
Borrow From Parents.
The CML found nearly 80% of first time homeowners under 30 were borrowing from their parents. This shows how reliant young people are becoming on their parents to get on the property ladder. If you find it difficult to approach your parents for help with a deposit. Try consider writing up a realistic plan which gives them a benefit from lending. This may make it easier.
Move to Cheaper Parts of the Country / Your Town.
House prices vary tremendously between different parts of the country or even within a city. Setting your sites on a different district / area may mean housing becomes much more realistic.
Part Rent / Part Buy
This is a government scheme which could help you to buy a house. It involves getting a mortgage for part of the cost and paying rent on the remainder. There are more details here New Home Build Scheme
Mortgage in Someone Else’s Name.
If getting a deposit is difficult, you could consider asking your parents to act as a guarantor or get a mortgage in their name. This is not ideal but it could be the only way to get on the property ladder.
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2 comments ↓
You could buy a share of a property as an investment with other likeminded individuals, so that you can all see a return in years to come. You could lease it out in the meantime to gain some moneyback to cover the maintenance etc.
We have the same problem here in South Africa with the younger generation, that they too are finding it incredibility hard to get into the property market the price of homes are very high and their average salaries just don’t cover everything, from paying their bonds, car and living expenses, we find that more of them are still living with their parents, until they get married. The property market really is a tough one to get into.
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