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UK House sales soar in June but young adult buyers are at lowest yet -The Ixl Company Discuss
Latest stats reveal that property sales in the UK in June hit their highest point since the financial crises began, however young adult buyers are still extremely low. The Ixl Company, based in South Quay take a look at what exactly is going on.
By: The IXL Company
In the UK in June 2014, 109,580 property sales took place which is the highest since 2007 according to HMRC data and statistics. “This is great news and a good sign that the economy and housing market is slowly recovering from the recession, people are buying again and it is starting to show signs of a good boost, which after 7 years is definitely much needed” says Sam Mouden, Managing Director of The Ixl Company in South Quay.
However, as good as the news is that more people are buying; the bad news is for the younger generation, those between 18-30. It is estimated that less than 3% of those buying properties in June were between the age of 18 and 30, which is just 3,000 properties, according to NAEA (National Association of Estate Agents) which is the lowest ever recorded. “Unfortunately for those in my age bracket it is extremely hard to get onto the property ladder, it is an extremely vicious circle, especially living in London where living expenses are so high. You either choose to rent which can cost between 30 and 60 percent of your salary and so you cannot save very much for a deposit, or you stay living with parents and save for a deposit but even then it can take years due to the latest stricter checks for mortgage applications and those with university fees are looking even longer because of their debts” says Emma, The Ixl Company receptionist in South Quay.
First time buyers are facing a huge struggle to get onto the property ladder, prices of properties are higher, which means deposits are also higher, new more stringent checks are being made, it is no longer just about having a deposit but also on how easily a first time buyer can make repayments, this is no longer taking into account just current employment but possible future changes to employment making it a huge upwards climb for those looking to buy for the first time. “I can understand exactly how hard it is for the younger generation to get on the ladder, especially in London let alone in South Quay where costs are even higher! Living costs in London, including rent, food, transport and bills are pretty much higher than average wages meaning that it is literally impossible to get out of a rut if you are stuck in one unless you have parents that you can live to enable yourself to save, and for many 25 year olds that have had ‘freedom’ since 18 that is a very daunting prospect of living back home again” says Sam Mouden, Managing Director of The Ixl Company, South Quay.
Property sales generally rise around this time of year, known as the ‘spring boom’ and so only time will tell if the market keeps rising at this pace. Hope is available for first time buyers using governmental schemes to get onto the property ladder. But with 87% of buyers in June being couples, it seems the safest and most sensible option is to buddy up and house up.
The Ixl Company