Even tougher to sell your house due to Landlords squeezing normal buyers

PRLog (Press Release) - Dec. 7, 2012 - Lets initially take a look at the banks and how they helped to create the economic situation that we are in. At the turn of the 2000's almost anyone could get a mortgage, not only that but many were able to get on the property ladder without putting down any deposit at all. Some would even make money from just purchasing a home and were able to take out 120% mortgages meaning that you had money to do up your house and try to increase the value even further. Because prices were going up on a weekly basis we witnessed a scramble which created even more demand. Surveyors had a very optimistic view and would quite often over value a property so that a bank could lend more, once again another reason for why prices increased. A combination of very hungry buyers, generous surveyors with a relaxed attitude and particularly generous lenders helped push prices up from the residential mortgage side of the market. This is commonly known information, what isn’t so much discussed is the greed of property investors and how they are the main culprits of the income mortgage gap.

We all know that house prices have increased tremendously over the past decade many of us are now feeling the pinch as property prices have doubled but average wages have remained the same. For those who were already on the property ladder before the boom they are able to get the champagne out as they have benefited from huge increases in price for just buying at the right time. Unfortunately for those who are still looking to get on the property ladder it is now harder than ever and they are finding that their average yearly wage doesn’t quite cut it, which has also created a stalemate in the market meaning that many can't move house. A well known company called You Sell Quick can help with this situation http://www.yousellquick.co.uk but it is particularly important that the banks improve there lending to earnings ratio so that buyers become available.

Buy to let mortgages became available in 1996 these had a different criteria to attaining your traditional residential mortgage. For the residential house buyer a mortgage is based upon your income, this differs from attaining a buy to let mortgage whereby the loan is dependant on the merits of the house itself and whether it’s rental can cover the mortgage payments by at least twenty percent. This difference in criteria has created the imbalance as properties have been easily purchased without incomes being accounted for and this extra demand from investors has forced prices further up. We are now in an ironic situation where would be residential buyers who can’t afford to buy their home due to this income imbalance are now only able to rent which has now increased the cost of renting. this appears to be a problem that has already gone to far and unless the government take out more measures to restrict investors then BTL properties will continue to inhibit normal purchasers from owning their own home. It's important that you arrange your own finances carefully and look after your credit report as can be seen here http://www.monroemainstreet.com/how-to-improve-your-credi... It doesn't’ seem likely that employers will start increasing the wages they pay as they know that there's more demand for their jobs then supply, if prices continue to rise and also the cost cost of renting becomes worse coupled with the cost of general living it appears that for future the Uk will be a very expensive place to live.