The UK property market Feb 2011

First time buyers should be made a protected species they are so rare. The Banks have tightened mortgage lending so much that the average loan to value ratio is now below 60%, completely stalling the property market.

Last year only 194,600 first time buyers managed to get a loan, which is about 30% of the level 10years ago and the latest figures for Dec 2010 show that the year on year decline is not only continuing, but is accelerating.

As we re-adjust to a new rental model of living, the rental market is becoming more competitive with a reported 4.4 tenants vying for each property that becomes available. Since house building has stopped and we were already short of sufficient dwellings, it looks like we have all the conditions for the next bubble.