The Observer reported this weekend on a 4% fall in the number of people buying on their own over the last 5 years. As house prices continue to increase, First Time Buyers are finding it more and more difficult to save for a deposit and then meet the strict affordability criteria now in place.
As a result many decide to club together and buy with friends, thereby increasing their buying power significantly. This means of buying is not without its own issues however, and experts strongly advise getting legal advice beforehand to set out what will happen in the event of future changes in circumstances, as well as confirming the share that each buyer has in the property.
The Times looked at the Buy-to-Let market, which could come under further pressure in the near future. The Prudential Regulation Authority (PRA) is proposing that lenders ensure that rental income is at a sufficiently high level to cover the mortgage and costs, and carry out stress tests to confirm affordability if rates were to increase.
These measures are designed to stop borrowers getting into difficulty, but experts say that lending in this sector of the market is likely to be dampened while landlords become accustomed to the changes.
What the papers said about friends buying together and Buy-to-Let woes