First time buyers are ‘f**ked’ unless parents already own a home, expert says
As mortgage rates are on the rise, the cost of borrowing increases, which makes it very costly for first time buyers to get on the property ladder.
To put things into perspective, single UK buyers will need to fork out a hefty deposit of £74,000 to buy their first home, new stats suggest.
Weighing in on the housing crisis is buying agent Henry Pryor, who has 39 years working in the business.
He claims that first time buyers are ‘f**ked’ unless their parents already own a home.
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Pryor told LADbible: "I'm really happy spending as much time as necessary with the next generation.
"They've been properly f**ked over by my generation. And they need to know the reality rather than what their parents say.
"We've loved the situation, the stupidity, at the moment of mum and dad lending money to the kids, so that kids can afford the prices that mum and dad and mum and dad's mates want to charge for their homes.
"That's not sensible. It means if your parents don't own their own home, you'll find it incredibly difficult to get your own home yourself.
"If your parents don't own the home, you will likely only to be able to rent a home.
"If your parents give you a leg up, the bank of mum and dad is the ninth largest mortgage lender in the country."
The buying expert also spoke about 'negative equity', to which he claims is a buyer's worst nightmare.
He explained: "It's one of the scariest things you can ever find in life because you can't get out of it.
"If you sell a house, you'll still be left owing the bank money. We don't have a system like they do in America, where if your house is worth less than a mortgage, you just hand back the keys.
"In this country, if your house is worth less than the mortgage, I will use a technical financial expression - you're f**ked.
"Because you've still got to pay back all that money until it's all paid back.
"In the meantime, where do you live? You can't borrow money, because you will have been bankrupted probably by your lender, because you haven't repaid your mortgage.
"And that is really when house prices fall. That's what people worry about.
"When they want to sell they find the house is worth less than their mortgage, and therefore they can't sell.
"Therefore, they can't move, they can't get a new job or relocate or get divorced or get married or have kids or your life gets put on hold."
Pryor has also predicted that the housing prices will sink next year, as a result.
He concluded: "For what it's worth, I've done this for 39 years. I know a little bit more than most people, but there's still more I don't know than what I do know.
"But the bottom line is I don't think that it's gonna go back to what it was.
"I think this is what it will be going forward. And as a result, if people have got less money, they can borrow less money, they can afford to pay less money.
"And that's why house prices will probably crash over the next 12 months.
"What you buy today will probably be cheaper in 12 months time. But in five years time, it'll probably be worth roughly the same."
If you've been affected by any of the issues in this story, you can find more information about where to get help from Turn2Us via their website
Anish Vij