First time home-buyers priced out of market

As seafront flats rise by as much as 1,000 a week and few houses available for under 90,000, new home-owners are stretching themselves to the limit to get their first foothold on the property market.

And though local estate agents are conscious of the crisis, more and more properties are sold to people fleeing high prices in the London boroughs.

Bexhill is running in line with an overall 20 per cent price rise and some seafront flats are selling for 50,000 more than this time last year, equating with last week's announcement that London and south-east prices are rising by 1,000 a week.

Scott White, marketing consultant and senior negotiator at Ward and Partners, said the property market was very tricky for first time buyers.

An increase in buy-to-let properties is also leaving young couples with nowhere to go.

"We still get a few couples coming in who are having to put more and more money in and really stretching themselves.

"We do advise them to be cautious in case prices start falling or rates increase, but some are determined to go ahead.

"There are still one or two bedroomed flats about for 60-70,000 but it is difficult to find a house locally for under 100,000.

He said agents see young couples receiving help more and more from their parents.

Roger Saunders from Rush, Witt and Wilson said: "There were examples of properties which have seen considerable appreciation over the last 12 months, in particular, the seafront flats. But the more affordable properties have also increased most significantly though I am always nervous of figures like 1,000 week. The increases in the last 12 months are, however, approaching 20 per cent

"If prices keep rising one wonders what first time buyers will do in two or three years' time.

"The feeling of the National Association of Estate Agents generally is that we should be looking carefully at what we could do to make it a fairer market for first time buyers. There is a crisis in affordable homes."

He said the government should look at other avenues like manageable mortgage terms or borrowing for life, as in Europe.

Bill Bolch, manager Brian Hazel, on the Marina, said the Bexhill market was exceptional at the moment with demand outstripping supply.

"We cannot get properties on the seafront in particular. Increasing demand from south London, Surrey, Orpington and Croydon where there is much more equity has forced up local prices.

"Any delay in the house sale means often prices are out of date two months down the line. It is an interesting but scarey market."

A spokesman for Abbott and Abbot said the market was very buoyant with two bedroomed flats selling at 100,000 and three-bed semis averaging 140,000. The market quietened last month possibly due to the World Cup.

r Currently the cheapest home around is a converted studio flat (bedsit) at 45,000.

The cheapest house will cost around 90,000. Three-bed semis will set you back anything from 130,000 in Pebsham to more than 170,000 in Cooden.

Detached homes in Cooden are fetching more than 200,000.

The most expensive homes on agents books in Bexhill are topping 400,000.