31
Jul
First-time buyers hampered by "archaic" property system
The HomeownersAdviceCentre.co.uk has described the process of
buying property as "archaic" and suggested that the government
should take steps to simplify the system.
Al Elliot, a spokesperson for the organisation, suggested that some
conveyancers take advantage of first-time buyers' ignorance of the
process and charge "extortionate" fees.
"Perhaps the introduction of Key Facts Illustration, like in the
mortgage industry, might make buyers realise what they are paying
for, and where the money goes," he said.
However, Mr Elliot noted that a shortage of appropriate mortgage
products - rather than high fees - is what deters young people from
stepping onto the property ladder.
According to a recent Royal Institution of Chartered Surveyors
report, a first-time buyer couple taking home lower-quartile
earnings would have to save 100 per cent of their joint annual
income to meet the £27,738 typically needed for the upfront
costs of purchasing a home.
