How first time buyers are facing the worst time to purchase a home in 70 years: ... trends now
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Finance industry leaders are demanding radical moves to help first time buyers who are facing the worst time to buy a home in 70 years.
Building societies say it is time to lift a cap on the number of young buyers who can take on mega mortgages - borrowing more than 4.5 times their salary.
They are also backing changes to property taxes to encourage – or pressure – older people to move out of large family properties.
Industry leaders say the situation has reached crisis point with home ownership falling and the number of people buying a property with a mortgage down by around 2m to 8m in 20 years.
A report from the Building Societies Association (BSA) argues planning rules should be torn up to prioritise building homes rather than controlling development.
Building societies say it is time to lift a cap on the number of young buyers who can take on mega mortgages - borrowing more than 4.5 times their salary. (Stock Image)
Industry leaders say the situation has reached crisis point with home ownership falling and the number of people buying a property with a mortgage down by around 2m to 8m in 20 years. (Stock Image)
The BSA 'First Time Buyer' study calls for a root and branch review of the mortgage market, property tax and planning regime.
It said: 'Becoming a first-time buyer is expensive, possibly the most expensive it has been over last 70 years.
'The cost of buying is a massive barrier to many prospective first-time buyers.
'For example, the typical successful first-time buyer now needs a deposit of around £60,000 across the UK but the average ranges from £27,000 in the North East of England to £144,000
in London – where support from family appears almost essential.
'The sizable deposit barrier has led to the rise of the so-called Bank of Mum and Dad,
