First-time Buyers Overpaying to Secure Home
First-time buyers who are desperate to get on the property ladder are prepared to overspend to secure the home they want.
Many first-time buyers are prepared to overpay for the home they want in order to get their foot on the property ladder, a new survey reveals.
More than a fifth of first-time buyers would pay out more than the asking price, up from 13 per cent from a year ago, according to Yorkshire Bank.
Some 16 per cent of those now looking to sell are now saying they would not accept offers under the asking price, up from 12 per cent on the same month last year.
Yorkshire Bank's latest Housebuyers report consequently concludes that 2006 will be more of a seller's market with prices set to rise steadily and more pressure on buyers to stump up the full price.
Gary Lumby, Yorkshire Bank head of retail, said: "Buyers are starting 2006 in a more positive mood than last year, when there seemed to be a lot more uncertainty regarding where the housing market was going.
"The market has been showing some encouraging signs of growth in the last few months. House prices have been rising - albeit modestly - and the number of mortgage approvals is up.
"In fact, the Council of Mortgage Lenders (CML) recently reported record December lending figures. This more positive outlook is being supported by expectations of a further cut in interest rates in the next few months."
But the survey also revealed that higher council tax is delaying first time buyers with a quarter waiting for councils to announce the new charges before making a decision.
