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Housing slowdown 'not helping' FTBs
05/12/2007
Although a slowdown in the property market will provide "some opportunities" for buyers, solicitors in Northern Ireland are unlikely to see first-time buyers (FTBs) benefiting, according to experts.
Although the choice of properties in Belfast and Northern Ireland means solicitors should see more clients wanting to seal a deal on a well-negotiated sale, first-time buyers may still struggle to get a mortgage in the wake of the credit crunch.
Director of research at Savills, Lucian Cook, said: "Clearly a slowdown is going to provide some opportunities for some elements of the market. But you have to think about who, effectively, it's going to help.
"I think, in the short term, it's unlikely to help that many first-time buyers because they're still going to be reliant on mortgage finance, and I suspect that mortgage finance is going to be harder to come by as a result of the credit squeeze.
"[Lenders] are going to be applying tighter lending criteria - possibly reduced income multiples - and they're going to look at affordability very hard."
Northern Ireland solicitors however, may see some determined new buyers for work as Mr Cook explained: "The first-time buyers who [price falls] will help are those who have accumulated relatively high levels of cash reserves, and who are well placed to buy. The people who are going to be in the market to buy are really going to be in the market to buy."
This news comes after the Financial Services Authority issued a warning to lenders to "protect themselves" from the credit crunch through tightening lending criteria.
Visit our residential property services page
Although the choice of properties in Belfast and Northern Ireland means solicitors should see more clients wanting to seal a deal on a well-negotiated sale, first-time buyers may still struggle to get a mortgage in the wake of the credit crunch.
Director of research at Savills, Lucian Cook, said: "Clearly a slowdown is going to provide some opportunities for some elements of the market. But you have to think about who, effectively, it's going to help.
"I think, in the short term, it's unlikely to help that many first-time buyers because they're still going to be reliant on mortgage finance, and I suspect that mortgage finance is going to be harder to come by as a result of the credit squeeze.
"[Lenders] are going to be applying tighter lending criteria - possibly reduced income multiples - and they're going to look at affordability very hard."
Northern Ireland solicitors however, may see some determined new buyers for work as Mr Cook explained: "The first-time buyers who [price falls] will help are those who have accumulated relatively high levels of cash reserves, and who are well placed to buy. The people who are going to be in the market to buy are really going to be in the market to buy."
This news comes after the Financial Services Authority issued a warning to lenders to "protect themselves" from the credit crunch through tightening lending criteria.
Visit our residential property services page
