Property Ownership Concerns Unsurprising
Concerns among the UK public that home ownership will remain out of reach for the foreseeable future are unsurprising, one specialist has commented, according to Zoopla. The state markets have stooped way below than that of being acceptable and more people seem to be deprived of housing.
Paul Holmes, chief executive of Firstrung, said he is not surprised by moneysupermarket figures showing that 38 is now the average age at which Brits expect to be able to buy their first property. With high inflation rates and uncertain increase in interest rates, securing a house now seems unachievable. The expert said that people's pessimism is mainly based on current house prices, which he described as "absurd" and "significantly overpriced" when viewed in relation to average earnings.
"You are looking at five times joint average income to be able to afford the average priced property it is bizarre. Property is still 30 per cent overvalued in terms of historical norms" he explained
Mr. Holmes noted that, if the average price of a property was somewhere in the region of Â£100,000 then pessimism would "disappear in a heartbeat" as potential buyers would see the figure as achievable.
Their pessimistic attitudes can only be addressed by a softening of house prices and greater faith in the government to be able to solve the UK's economic problems, the expert explained. He argued that people are currently "fearful" of spending money and have little confidence in the economy or their future ability to hold on to their job and save for the future.