Good news for the vendors, but not for first-time buyers
Published at 14:10, Friday, 20 August 2010
ACCORDING to two sources of property tracking information, Cumbria’s housing market looks to be bucking national trends and edging out of stagnation.
But evidence from the Land Registry and some national estate agencies may not be the cause for celebration that it initially presents.
While house sales in the county rose by 15 per cent in the three months to June, compared to the same period last year, there are also reports that second home ownership in Cumbria is revitalised and prices are rising.
What’s good news for vendors, who have waited for offers, is not so good for first-time buyers and locals who can’t afford to meet asking prices.
A combination of low returns on investments and a growing trend among Britons to holiday at home has led to a 2.6 per cent jump in second property purchasers.
Potential returns from holiday lets are proving to be a draw in recession and Cumbria is growing in popularity.
Though house prices remain lower here than in many other parts of the country, so do most salaries and first-time buyers – key to any reinvigoration of the market – still need at least a 10 per cent deposit.
Should they manage to find the cash, lending continues to be very tight.
Green shoots of fragile optimism aren’t yet a source of encouragement to young people keen to work and live in Cumbria. It’s hard to estimate just how long they’ll have to wait for their good news and whether the county can afford to accommodate an increasingly ageing population in the meantime.
It has been said before that special needs call for special measures.
But it’s worth reiterating that discounting for local first-time buyers may yet be the most effective recourse – along with prioritising rural housing for locals and banks and building societies lending with a policy of sensitivity to particular regional circumstances.
Published by http://www.cumberlandnews.co.uk