High Home Prices Dampen European First Time Home Buyer Prospects

Sometimes the glass is half full, and sometimes the glass is half empty. It all depends upon your perspective. Rising home prices in Europe are celebrated by sellers, but are quite the contrary to first time home buyers. The price of homes is already beyond the reach of most 1st time purchasers, and further price increases will simply make the prospect of home ownership that much more improbable.

Experts don’t see this trend reversing in favor of first time buyers anytime soon.

The Financial Times reports:

First-time buyers across Europe are pessimistic about their chances of getting on to the property ladder and believe society would benefit if house prices fell.

Half of all consumers in Europe are bullish about house prices rising in the next 12 months but most feel that first-time buyers across the continent face worsening conditions as a result, according to an international survey of homes and mortgages by ING. Four in five of the 15,000 Europeans questioned in the survey said it is becoming increasingly difficult to buy a first home.

House price indicators report a steady rise in property prices across Europe with some rising faster than others.

Data from Eurostat Statistical Data Warehouse reports that in the UK property prices rose by 8 per cent over the past year to the first quarter of 2015. This is eight times the European average.

This rise has been particularly painful for UK homebuyers: some 89 per cent of people surveyed questioned how first-time buyers would ever buy a property in the UK.

The figures are supported by research published last week which revealed that the number of property millionaires in Britain has more than doubled over the past three years and has broken through the 500,000 mark for the first time.

>> read the full article at ft.com

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