Were you a first time home buyer in 2007?

If so, figures from HSBC suggest that the 360,000 people who bought their first home in 2007 are unlikely to be able to move, with first time buyer house prices having fallen by £11,000 since then.

HSBC say that a typical first time buyer who bought in 2007 with a 10% deposit would have started with £16,000 worth of equity.  However, they calculate that in the years since, these homeowners are unlikely to have increased their equity, as their repayments will have been offset by the decline in the value of their home.

HSBC believes that moving up the housing ladder costs £27,000, leaving an £11,000 shortfall.

 

Source:  Credit Action – December 2011 edition

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