Credit Crunch

First-time house buyers in Oswestry are being put off by the need to raise thousands of pounds for a deposit, according to industry experts. Local mortgage advisor, Emma Dyson says that the number of general enquiries from new buyers have "reduced significantly".

According to the Commission for Rural Communities State of the Countryside report (published 16 July 2008), the problem in Shropshire's rural areas is particularly bad. The report suggests poverty in the countryside is rising at a faster rate than in urban areas, with the lack of affordable housing the 'dominant challenge'.

While house prices in Oswestry aren't falling as quickly as in larger towns and cities, average earnings remain low. Other costs, including food and fuel, have also risen - making it more difficult to build savings.

One positive for Oswestry's would-be first-time buyers is that the average cost of a property is significantly lower than many other parts of Shropshire (£193,395, compared with a county average of £213,639).

There's also good news when looking at the cheaper properties sold over the last quarter. Within Shropshire, Oswestry has the lowest average price among semi-detached houses (131,150), and one of the lowest average figures for terraced houses (£123,107, compared with a county average of £152,200).

According to figures released by the Royal Institution of Chartered Surveyors (Rics) for June, the number of people moving home is at its lowest level since surveyors' records started in 1978.

Rent now, buy later

The government is expected to announce a pilot scheme which offers first-time buyers the chance to rent a new home at a discounted rate for up to three years. The idea is to allow them to save for a deposit and eventually buy a share of the property. A range of other measures are also planned, including partnerships between councils and private companies to build new homes on surplus land.