Released on = August 14, 2007, 11:17 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = Despite the apparent slowdown in house price inflation in
the UK, widely accepted as being the consequence of five interest rate rises in the
last 12 months, there can be no doubt that first-time buyers in Britain have had a
bad time of it in recent years. The consequence, according to Investors Provident
director Hetal Shah, is an increased interest in buying a home overseas instead.

Press Release Body = Despite the apparent slowdown in house price inflation in the
UK, widely accepted as being the consequence of five interest rate rises in the last
12 months, there can be no doubt that first-time buyers in Britain have had a bad
time of it in recent years. The consequence, according to Investors Provident
director Hetal Shah, is an increased interest in buying a home overseas instead.

Those who do make it on to the ladder are paying record levels in relation to their
income, as revealed by figures from the Council of Mortgage Lenders last month which
showed that in June this year the average first-time buyer had to borrow 3.37 times
their income to get on the housing ladder. Also, the Thrifty Scot noted the fact
that 60 per cent of first-time buyers have to pay stamp duty, up from 52 per cent in
May 2006. The situation contrasts with Ireland, where the government recently
abolished stamp duty for those taking their first steps on the ladder.

New government plans may be in the pipeline to build more homes and offer extra help
to alleviate the problem in the longer term, but for now the situation remains
acute, not least with interest rates likely to go higher, following the Bank of
England\'s quarterly inflation report today. The report stated that if interest rates
stay at 5.75 per cent Consumer Prices Index inflation will not fall to the target
level of two per cent. That synopsis was described by Investec economist David Page
to Reuters as a \"clear indication of risks that we\'ll see a hike [to six per cent]
over the next three months.\"

Small wonder, then, that the proportion of first-time buyers has, according to
recent figures from Housepricecrash.co.uk , fallen from 55 per cent of the market a
decade ago to 29 per cent now.

The result of all this is an increased desire to look overseas. Mr Shah states that
while the UK situation is not \"primarily\" the reason for the popularity of overseas
investment in homes, \"it is definitely a major factor\", noting that many of the UK
residents that Investors Provident deal with are buying one or two properties
overseas while still renting in Britain.

\"We\'re getting a lot of people who used to traditionally look at the UK market and
never really thought about overseas investment and now are starting to look overseas
for sure,\" he added.

Mr Shah specified that this does not mean that the younger generation are looking to
move abroad; that is largely the preserve of the over 50s, he pointed out. Rather,
it is the returns on rental income that the young can get which attract them.

All of which, of course, could pay off for the frustrated first-time buyers. Rental
income from overseas can help pay rents in the UK, while the returns on the overseas
investment - including the eventual sale of that property - may just help provide
that extra capital to enable them to finally get on the UK ladder if and when the
housing situation in Britain does get better. Otherwise, there is always the chance
they could join the over other 50s when they get that old and retire to the sun.


Web Site = http://investors.assetz.co.uk/

Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA,
0161-456-4000, linkexchangeseo@gmail.com