Chances 'still exist' for Shropshire first-time buyers

The demise of the first-time buyer has been "greatly exaggerated" with plenty of Shropshire homes within reach of prospective homeowners, according to a county estate agent.

Although buyers are facing difficulties getting a mortgage, many still have enough of a deposit to buy a home, said Bill Brookes, chairman of DB Roberts & Partners.

He said: "The demise of the first-time buyer is greatly exaggerated - we have certainly agreed a number of such sales in the past month.

"There are clearly some parts of the county, and some house types, where prices are out of reach and life is indeed more difficult for young buyers.

"But if we look only at a typical first-time buy, the story is very different.

"Figures for the third quarter of 2010 show the average price achieved by a semi-detached house in SY1 postcode was £140,000 while in Telford, the popular localities of TF1 and TF2 had more than 60 semis changing hands at average prices around £110,000.

"Terraced houses, now a typical first-time buy, were averaging £144,000 in SY3, while in Telford, around 50 terraced houses changed hands for less than £100,000 with around half of these being in the mid-£80,000s.

"Even in TF2, which includes sought-after newer terraced types in locations such as Muxton and Priorslee, the average terraced price was less than £130,000."

Mr Brookes said agents fully understood the difficulties faced by purchasers.

"Much of it is caused by unduly strict lending criteria adopted by the major banks.

"Although it is possible to obtain higher loan to value mortgages than was the case last year, the under-writing is very strict and interest rates less attractive.

"On the other hand, many young buyers are getting help with deposits from family and finding that they can obtain much more attractive mortgage deals."

Mr Brookes said DB Roberts recently sold a £137,000 home in Bayston Hill to a young couple whose parents had provided the deposit and a £128,000 home in Wellington to a couple with 15 per cent deposit which had come from savings and parents.