Plight of First Time Buyers - Graduates
With the end of the 100% mortgages and first time home buyers having to now put up a significant deposit one has to ask how many first time buyers with the current purchase price of a small new home of £100,000 can find 10% deposit - £10,000.
Billy was worried that however he did the sums they didn’t add up!
The situation must be particularly difficult for graduates many of whom, in the first year of earning a salary, have to pay back their student loans and at the same time are expected to save a significant amount of money to raise a deposit for a mortgage.
I am in favour of far more careful lending by banks and greater care in the vetting of applications. We have to ensure that the figures put down by applicants are not massaged to make them look better off than they are,
But it would be a disaster if buying a home became as difficult in the 21st century as it was in the 1960s and 1970s. In those days fewer people bought their own home, there were many more council houses and the idea of renting did not carry the same stigma as it does today.
While the government is putting more money into affordable rented homes this does not make up for the millions of homes that were sold off to their owners over the last three decades.
Most people want aspire to own their own home yet it is most difficult for the very people the market needs so badly – those reaching to make the first step onto the property ladder.
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