Everyone Should Have a House or Every Household Should Have Its Own House?
Weekly article review: Everyone should have a house or every household should have its own house?The article reviewed was retrieved from “The Telegraph” and the article title is “House prices for first time-buyers rise to record high as supply dwindles”. The author of this article is Elizabeth Anderson and published on 13th October 2015.The article is emphasizing about the high records in house prices for first-time buyers, which is they are paying more than expected in August. Buyers have to earn up their income around £45,000 a year to get their housing ladder. It is because the average price for starter home in UK is increased to £215,000 now. So, in this case, the UK Government is giving chances to young buyers to afford to buy houses with “Help to Buy” scheme. But, the minimum supply of houses in the market increased its prices. So, the government taking the efforts to solve up the first-time households` crisis, such as new housing developments with discount to the first-time buyers. This development offer a certain amount of properties to first-time buyers under 40 for 20% less than the market price. After the discount were applied to the starter homes` price, will be capped at £250,000 across the UK and £450,000 in London. (Anderson, 2015)

After reading the article, the household price for first time buyers rose to 5.2% over the year and the property value in parts of northern England increase faster than London. And house prices in Scotland have decreased to 0.9% and prices in Wales raised up to 0.8% £174,000 and the property value in Northern Ireland rose up to 2.9% to £151,000. So in this case, the first-time buyers have to manage their financial risk due to higher prices of houses. In addition, they may plan their household purchasing to their mortgage loans and other factors such as interest rate. In the other hand, the lenders are offering more applications for loans at the both low and high loan-to-ratios. So, the demand for loans was increasing rapidly and the house prices increasing strongly, especially for first-time buyers. Howard Archer, the chief economist of HIS Global Insight said that they expect the price of houses will be higher to 7.0% in 2015 and 6.0% in 2016. He added that the house purchasing market can be supported by largely helpful fundamentals, notably stronger earnings growth, high employment and elevated consumer confidence. (Wallace, 2015)                3What I have learn by reading this article is government should supply more affordable prices houses to the low and middle-class households to balance up the demand of houses in market. Finally, the first time-buyer can be a householder with managing less financial risk.New term I have learned is “Starter home” which is a ​home that is ​smaller and less ​expensive than the typical homes in an ​area, and that ​first-time ​buyers should have enough ​money to ​buy. (Meaning of “starter home” in the Business English Dictionary).

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First Time-Buyers And House Prices. (April 6, 2021). Retrieved from https://www.freeessays.education/first-time-buyers-and-house-prices-essay/