Mr Emery survived but found the steep mortgage rates hard to stomach, particularly when the value of his three-bedroomed home quickly fell from £98,000 to £78,000. Luckily, at the time we didnt need to move, but I remember friends of ours giving back the keys to their flat and moving north when they couldnt sell their property and owed more than it was worth. Negative equity was then problematic, with repossession figures peaking at 75,540 in 1991. By 2000 numbers had fallen to 22,610, but Mr Wilcox warns that if values fall we may again see repossessions increasing.
If values hold up, people always have the option to sell or rent for a while, but if they drop, that route is blocked and you end up with more forced repossessions. Colin Brown, an agent for Bushell, does not foresee imminent problems, nor does he believe interest rates will rise. Whats most important for young buyers is how much theyve got left to spend after paying their rent or mortgage. He does not accept that the Rowntree reports inherent warnings apply to first-time buyers registering in his area.
London is such a unique market and so squeezed for property, you only have to look at the number of flats selling off-plan to see that [prices are not going] down. One first-time buyer, Neil Daugherty, a PR consultant, shares this optimism. He recently bought a one- bedroom flat in south London. When Angela Neustatter got back to her house one morning after dropping her children off at school, she found the film director Mike Newell standing on her doorstep. Web Copywriting Her house had caught his eye as a potential location for the feature film he was making, the hit British movie, Four Weddings and a Funeral.
Dont bother feeling flattered; people are willing to pay a lot of money for a location like this. It was a big, old house so we just shifted upstairs with the kids and left them to it. All the neighbours thought it was quite amusing, though if it had gone on for months rather than days they may have found it less so. Aside from the joy of seeing Hugh Grant in her bed, and her kitchen Aga immortalised on celluloid, the payment was enough to take the Neustatters on a luxury holiday.