Published on : Thu, 07 Apr 2005 00:00GMT
by : Lisa Pitt

The nation’s policy makers are concerned that the slowdown in the property market has not resulted in property prices dropping to more affordable levels or more home-buyers getting onto the property ladder as was expected. As the boom subsided, people expected property prices to stabilise and even drop below current levels, which many see as unrealistic. However, so far they have been disappointed, with sellers, whether developers or private owners refusing to accept lower pricing levels and in some case asking even more, despite the oversupply market situation.

Prompted by this public disappointment, an MP has urged the nationwide council of builders and developers to make homes affordable for everyone, particularly for first-time buyers.

MP Elfyn Llwyd leader of The Party of Wales has asked builders from his constituency to start projects that first-time buyers from lower income groups would be able to buy.

He claimed that many thousands of families were living in rented homes as property prices were considered high. In some places property prices were even considered unrealistically high. Many of those who lived in rented homes were young people who could not afford to buy a home in their own area. They were beginning to get disappointed with the government.

He quoted numbers and figures to support his claim. In Wales alone, property prices increased 124 percent between 1997 and 2004.

“New Labour needs to do more…” he said “…if it wants to really solve Wales’ housing problem.”

Mr Llwyd said that he had met innumerable people across Wales who told him about their housing woes. He would be presenting those concerns to the Minister.

A similar scenario was being played out in the St. Ives constituency. A survey here has revealed that property deals for second homes were more than double the number of deals for first-time home buyers. More than 40 percent of those ‘second home properties’ were sold to people from outside the constituency. Prices played a key role in deterring the first-time buyers. Out of all the properties sold last year, only 7 percent were sold below £100,000.

An economist for a reputed investment firm said “The current slowdown in the property market may be the right time for initiating a low-cost housing scheme.”