In a letter to the AMI chief executive, the pensions minister asks for reassurance that borrowers saving into a pension will not be advised “inappropriately” by brokers. This puts mortgage brokers in an impossible position.
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The Model Works counter that mortgage repayments are pegged to the original purchase price and so the issue is not the cost on day one, but the cost in 20 years’ time.
The Model Works disagree and argue that first-time buyers who spend their twenties renting lose out by around £270,000 as rents goes up with inflation.
Promoting initiatives like Help to Buy and the Funding for Lending Scheme that cause property prices to rise is symptomatic of this Government’s attitude and priorities – so I have some blunt advice for my children.
The Model Works, say it’s important to fix the system first before getting carried away with schemes like Help to Buy.
The Model Works indicates the returns from investing the savings made on buying a home at 24, as opposed to 37, could amount to £240,000 over a person’s life.
Delays in getting on the housing ladder will cost the average first-time buyer over £270,000 over their lifetime, or twice the cost of a typical first time buyer home, but those forced to rent into their retirement could pay even more dearly driving up housing benefits and state long term care costs to truly unsustainable levels.
Delays in getting on the housing ladder will cost the average first-time buyer over £270,000 over their lifetime, or twice the cost of a typical first time buyer home, according to independent research by The Model Works.
Older first-time buyers who spend their twenties renting could have lost out on more than £270,000, according to analysis by The Model Works.
In the 1960s the average first time buyer was 24. Now, ‘unassisted’ first time buyers are 37. The Model Works examines the resulting costs for prospective homeowners.
Last year lending via buy-to-let mortgages soared to a level not seen since 2008. But as first-time buyers and families struggle are we seeing a backlash against buy-to-let?
As more of the country’s housing stock is absorbed by the rental sector, what are the implications for a growing nation of renters, as first-time buyers increasingly find themselves competing with cash-rich landlords.
Recent figures demonstrating the growth of the buy-to-let sector are sparking debate on whether the market will help or hinder ‘generation rent’ in the long-term.
A year on from the publication of Laying the Foundations: Housing Strategy for England, it is interesting to undertake a forensic analysis of why this government strategy is failing and what can be done to get the initiative back on track.
With 850,000 young people turning 18 every year, it is naive to think we can simply build ourselves out of this situation and expanding the PRS will exacerbate the problem.
Its an argument that rears its head time and again: vociferous claims denying landlords are making it harder for first-time buyers to get on the housing ladder. Our panel of experts has another look.
Brian Hall, a UK management consultant with 30 years experience of the financial services sector and founder of The Model Works, imagines what life could be like for first-time buyers.
Fuelled in part by poor and incomplete advice to naive investors, buy-to-let is seen by many as a way to make a fast buck but, this is not necessarily the case.
Brian Hall, consultant and author of a new buy-to-let index, does battle with industry heavyweights Peter Williams and John Wriglesworth over buy-to-let versus the first-time buyer.
About the Author
Brian Hall is a UK management consultant with 30 years experience of the financial services sector with banks, building societies, centralised lenders, distributors, technology providers and regulators.
About The Model Works
The Model Works is a side-project to explore the potential commercial value of Dynamics and this website is a repository for the deliverables.
Research has focused on homebuying first time buyer exclusion and the buy-to-let boom as these are complex issues that have enormous and far-reaching consequences.
Unlike analysis which breaks things down into their component parts, Dynamics models the behaviour of the whole thing. It provides accurate and often unexpected results that offer insights, facilitate communication and deliver results.
Dynamics models are quick and easy to build. They are interactive and quantitative and can be used iteratively to allow solutions to the widest range of problem scenarios to be evaluated and unintended consequences to be identified.