Ludlow property market is strong but tough for first time buyers

But this is leaving first time buyers caught in a squeeze as people with money increasingly turn to house buying as an investment opportunity.

With a limited supply and strong demand there is a seller’s market with many properties being sold within days and before there has even been time to put up a ‘for sale’ board.

Andrew Cadwallader, a partner at Samuel Wood in Ludlow town centre, said that there is a lot of activity as confidence returns to the market.

“There is very limited choice for people looking to rent and to buy especially in the traditional family home three bedroom semi-detached type of property,” said Mr Cadwallader, who has been with the business for 11 years.

He said that the people looking to get on the property ladder are also having a tough time finding a home that they can afford.

“There are three types of buyers looking for smaller starter home type properties," he said.

“As well as first time buyers there are a growing number of people who are buying property as a ‘buy to let investment’ because they can get a better return than by keeping their money in the bank or in a savings bond.

“There is also interest in this part of the market from people who want to move to a place from Ludlow and south Shropshire but are willing to downsize because circumstances have changed and the family have fled the nest.”

He said that all the signs are that the property market is returning to the levels last seen before the banking crisis but that there were casualties.

“There are people who were not able to get in at the starter home stage and now they have children are looking to buy family homes but do not have a first property from which to trade up,” said Mr Cadwallader, who said there is also a limited availability of rented homes.

But Debbie Anderson, who is a partner with McCartneys and chair of the company’s property section, does not think it is all bad news.

“It has never been easy for first time buyers in Ludlow and south Shropshire because it is an attractive area and prices are relatively strong while wage levels tend to be lower,” she said.

“First time buyer properties are attractive to people who are looking for a buy to let investment but this means that there is good quality rented property available.

“Confidence is high with buyers who are much less fearful that there will be a drop in prices.”

Mrs Anderson said that buyers typically need to find a deposit of between five and 10% which was a much better and more stable situation than in the days before the banking crisis when 100% mortgages were fairly readily available.

“Last year was a very good one for property and I expect this year to be just as good although there may be a bit of a slow down before the general election but I would expect a spike later in the year,” said Mrs Anderson.