First-time buyers still can't get foot on property ladder

SPECULATORS are taking advantage of the dramatic fall in house prices – but first-time buyers are still struggling to get a foot on the property ladder.

The average price of a home in Leek has fallen between 15 and 20 per cent since the start of the economic downturn.

Three estate agent branches shut as the town experienced its worst property market crisis since the Second World War.

Butters John Bee, Heywoods and Reeds Rains all fell victim to the effects of the credit crunch, while redundancies have been made at Daniel & Hulme.

Values have now steadied at a staggering £19,000 below the 2007 peak, according to leading industry website Zoopla.

Charles Ball, who runs Bury and Hilton, in Market Street, bemoaned a lack of opportunity for young couples to get their own place.

He said: "There are a fair amount of speculators about, buying at the cheaper end to do houses up for let. But for first-time buyers it is still difficult to get a mortgage.

"For those in secure jobs, entering the market should not be too much of a problem but a lot of people cannot afford houses even at sensible prices.

"If interest rates go up, as invariably they will, it may prove even more difficult."

Just 239 houses have sold in the town over the past 12 months.

It compares with an average of around 570 houses changing hands in Leek each year during the mid-2000s property boom.

Turnover, however, is gradually improving.

Mr Ball suggested properties coming on to the market can now expect to change hands inside a couple of months.

But he warned any homeowner considering a sale it may take up to a decade before prices recover to their highest level – if at all.

He said: "Prices may have improved in London but around here that will only happen if there is a scarcity of availability.

"We have 250 on our books, it would need to be about 100 to make a difference.

"We have had a busy nine months but things could be a lot, lot better."

Joiner Kieran Kelly admitted he considered himself lucky he needed just a £4,000 deposit when he found a house in Queen Street, Leek, in 2005.

The 29-year-old said: "I sympathise with anyone looking to buy a house at the moment – it must really be a struggle.

"I was lucky to get a 30-year mortgage and such a low deposit but the five years of fixed rate interests are up this summer.

"There is no doubt interest rates will go up and it is a nervous time wondering how payments will be affected. But at least I am on the ladder."

Bank administration assistant Paul Roberts felt there was no chance of him owning his own place anytime soon.

The 24-year-old, of Blackshaw Moor, said: "It doesn't quite seem fair how you can work full-time but not even be able to contemplate getting a mortgage.

"I only pay £240 a month in rent but it is dead money. I would love to be paying that money to buy my own flat. It's very frustrating."